Friday, February 17, 2012

Maine Releases Private Adviser Interim Order

An interim order exempting private fund advisers was issued by Maine's Office of Securities, effective February 16, 2012, until a private fund adviser rule can be proposed. Persons employed by or associated with exempt private advisers are, themselves, exempt from investment adviser and investment adviser representative registration.

To qualify for the exemption, investment advisers providing advice only to qualified private funds defined in SEC Rule 203(M)-1 must: (1) maintain a place of business in Maine; (2) not hold themselves out generally to the public as investment advisers; (3) not be subject to "bad boy" disqualification provisions under Rule 262 of federal Regulation A; and (4) send the Office of Securities SEC-filed reports and amendments required for exempt reporting advisers under SEC Rule 204-4. Other requirements are specified in the Order.