Sunday, July 24, 2011

Missouri Advises IAs to 3(c)(1) and (7) Funds Through No-Action Letter

A no-enforcement action letter request was granted by the Missouri Securities Division for a Missouri investment adviser to 3(c)(1) funds under the Investment Company Act of 1940. The investment adviser's exemption from registration in Missouri applies until either June 28, 2012 or the date the Missouri Securities Division adopts a new private fund adviser rule, whichever date comes first. The Dodd-Frank Act's rendering the Section 203(b)(3) federal private fund adviser exemption ineffective on July 21, 2011 simultaneously made Missouri's existing Section 203(b)(3) private fund adviser exemption at Rule 3-51.180(6) ineffective. Advisers to 3(c)(1) and 3(c)(7) funds, without the temporary no-action letter, would have to register in Missouri or find another available exemption.