Kansas Provides Temporary Exemption for IAs Following Dodd-Frank 7/21/2011 Effective Date

Investment advisers exempt from SEC registration as of July 20, 2011 by virtue of the de minimis exemption at Section 203(b)(3) of the Investment Advisers Act of 1940 are exempt from registration in Kansas from July 21, 2011 through March 30, 2012, provided the investment advisers: (1) had fewer than 15 clients during the preceding 12 months; and (2) neither held themselves out generally to the public as investment advisers nor acted as investment advisers to any investment company registered under the Investment Company Act of 1940 ("IC Act") or a company electing (and not withdrawing its election) to be a business development company under Section 54 of the IC Act. Similarly, investment adviser representatives employed by investment advisers covered by the temporary exemption are, themselves, exempt from registration in Kansas until March 30, 2012. NOTE: This administrative order of the Kansas Office of the Securities Commissioner supersedes an intepretive order on hedge funds from November 4, 2008.