Publications

June 30, 2010

House-Senate Conference Committee Approves Private Fund Investment Advisers Registration Act

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On June 25, 2010, a House-Senate conference committee reached final agreement on the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”). Included in Title IV of the Act is the Private Fund Investment Advisers Registration Act of 2010, which eliminates the “private adviser exemption” from SEC registration currently contained in Section 203(b)(3) of the Investment Advisers Act. As a result, many investment advisers to private funds (with some exceptions) will be required to register with the SEC. Registered advisers will be subject to substantial regulatory reporting and recordkeeping requirements regarding the private funds they advise. In addition, the Act effectively raises the assets under management (“AUM”) threshold for federal registration of investment advisers to $100 million, with those advisers falling below such threshold becoming subject to state registration and regulation.