Private Adviser Exemption

California Extension of Private Adviser Exemption From State Registration

On July 7, the State of California Department of Corporations issued an emergency regulatory action amending Section 206.204.9 of the California Code of Regulations to extend the exemption from adviser licensing requirements under Section 25230(a) of the California Corporate Securities Law of 1968. This exemption was available to advisers that were able to rely on Section 203(b)(3) of the Investment Advisers Act of 1940 (the “Private Adviser Exemption”). With the repeal of the Private Adviser Exemption by the Dodd-Frank Act on July 21, the action amends Section 206.204.9 by replacing references to Section 203(b)(3) with the substantive conditions of the Private Adviser Exemption. The action is effective as of July 21 and will expire on January 17, 2012. Emergency Regulatory Action.

SEC Final Rules for Private Fund Adviser Registration

On June 22, the SEC adopted final rules and rule amendments under the Investment Advisers Act of 1940 implementing provisions of Title IV of the Dodd-Frank Act. As anticipated, the SEC announced that it will extend the deadline for advisers that had been relying upon the “private adviser exemption” under Section 203(b)(3) of the Advisers Act to register with the SEC until March 30, 2012. (The private adviser exemption was rescinded by the Dodd-Frank Act, effective July 21.) We will provide an analysis of the final rules adopted and other actions taken upon reviewing them in their final form. SEC Release. Implementing Release Final Rules. Exemptions Release Final Rules.