California to Extend Emergency Effectiveness of Private Fund Adviser Exemption

On January 5, 2012, the Commissioner of Corporations will file with the Office of Administrative Law (OAL) the readoption of emergency Rule 260.204.9 of Title 10 of the California Code of Regulation (10 C.C.R. §260.204.9) for a period of no longer than 90 days. The changes to the rule will extend the current exemption from registration for investment advisers who are “private advisers” for an additional 90 days. The changes to the rule will extend the current exemption from registration for investment advisers who are “private advisers” for an additional six months. The anticipated operative date of the emergency regulation is January 18, 2012.