Wednesday, February 01, 2012

Investment Management FAQ Explains Dodd-Frank Mid-Sized Investment Adviser Provisions

Pursuant to the Dodd-Frank Act, a mid-sized adviser with between $25 million and $100million assets under management must, after July 21, 2011, must register with the SEC if it is not required to be registered as an adviser with the state securities authority in the state where it maintains its principal office and place of business or is not subject to examination as an adviser by the state where it maintains its principal office and place of business.

The Division of Investment Management (FAQ) has advised that a mid-sized adviser registered with the SEC as of July 21, 2011 must remain registered with the Commission until January 1, 2012 (unless an exemption from Commission registration is available). Each adviser registered with the Commission on January 1, 2012 must file an amendment to its Form ADV no later than March 30, 2012, which for most advisers will be their annual updating amendment. A mid-sized adviser that is no longer eligible for SEC registration will need to be registered with the state securities authorities by June 28, 2012, and must withdraw its Commission registration by filing Form ADV-W, indicating it is filing a partial withdrawal, no later than that date.

A mid-sized adviser with its principal office and place of business in New York or Wyoming is not subject to examination by the state securities authority within the meaning of the Dodd-Frank Act and would have to register with the SEC. A mid-sized adviser with its principal office and place of business in any other state is subject to examination. (Division of Investment Management FAQ)

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