Sunday, July 24, 2011

District of Columbia Sets Forth Procedures for D.C. Advisers Following Dodd-Frank

Investment advisers transacting business in the District of Columbia on or after July 21, 2011, the date the private fund adviser provisions of the Dodd-Frank Act took effect, must abide by the following procedures:

* Advisers with less than $100 million in assets under management must license with the D.C. Department of Insurance, Securities and Banking ("Department") before June 28, 2012 to conduct business in the District of Columbia after that date. These advisers if registered with the SEC before July 21, 2011 will remain registered with the SEC until January 1, 2012 when they will have until March 30, 2012 to file Form ADV stating their switch to state registration. Investment advisers ineligible for SEC registration must file Form ADV-W, Application for Withdrawal from Investment Adviser Registration, with the SEC between March 30, 2012 and June 28, 2012, the date the advisers must be licensed in the District of Columbia. To be licensed in the District of Columbia by June 28, 2012 these advisers must follow the implementation schedule of SEC Rule 203A-5 and also, between January 1, 2012 and March 30, 2012, submit a licensing application to the Department to be processed but remain pending until the SEC accepts the firm's Form ADV-W at which time the application becomes effective in the District of Columbia upon the Department's approval.

The above advisers if not registered with the SEC before July 21, 2011 may not offer advisory services in the District of Columbia after July 21 unless they are licensed by the Department or not subject to licensing requirements because of Section 31-5602.02 of the District of Columbia Securities Act.

* Exempt reporting advisers under SEC Rules 203(l)-1 or 203(m)-1 that act as advisers in the District of Columbia without a D.C. exemption from licensing must submit an application to the Department between January 1, 2012 and February 28, 2012 to ensure licensing by March 30, 2012, the date of required licensure for continued transaction of advisory business in the District.

* Advisers to pension funds with less than $200 million in assets under management (former SEC Rule 203A-2(b)) that act as advisers in the District of Columbia without a D.C. exemption from licensing must submit an application to the Department on or before the expiration of 180 days of advisers' fiscal year-end, the date of required licensure for continued transaction of advisory business in the District.

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