Legal Developments and Considerations in Business Law for May 2011

Private Fund Adviser Registration under New SEC Guidelines.

Slowly but surely times are changing.  As part of the regulatory upswing under the Dodd-Frank Wall Street Reform and Consumer Protection Act, advisers to certain private funds will have to register with and report to the SEC.  This means that certain private equity, hedge, and venture capital fund advisers who could have once escaped SEC registration will no longer be so lucky.  Although there are still exemptions built into the Dodd-Frank provisions, they are much more restrictive, in terms of who can use them.  With the SEC set to announce new rules concerning registration and reporting, it’s time to brush up on the basics and look to the future.  As is often the case, time and regulatory law-making waits for no man or woman or, in this case, adviser.  For a detailed discussion of this issue see this article.