California's de minimis exemption for certain investment advisers with fewer than 15 clients is being temporarily extended by the Department of Corporations for six months, from July 21, 2011 through January 21, 2012, with some amendments to the text. The extension's purpose is to give investment advisers who rely on the current exemption time to adjust to the SEC's final rules for investment advisers expected to be adopted by July 21, 2011 or during the California temporary extension period. The SEC rules are required because of the Dodd-Frank Wall Street Reform and Consumer Protection Act's replacing the federal de minimis exemption with a private adviser exemption, effective July 21, 2011.
Note that the Department of Corporations sought public comments in March of 2011 on a pre-proposed private adviser exemption rule. The Department's amended de minimis exemption is the first step in that direction.
Please address inquiries on the emergency rule to Ivan Griswold, Corporations Counsel, Office of Legislation and Policy, at (415) 972-8937; the backup person is Karen Fong at (916) 322-3553. Written comments may be submitted to the Department of Corporations, Office of Legislation and Policy, 1515 K. Street, Suite 200, Sacramento, California 95814.