Until recently, certain non-US investment advisors have been able to avoid registration relying on the 'private advisor' exemption. The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in July 2010 and effective as of July 2011, removed this exemption replacing it with following three narrower exemptions for non-US advisers.
- The Foreign Private Adviser Exemption
- The Private Fund Adviser Exemption
- The Venture Capital Fund Exemption
Unless one of these narrower exemptions applies, then as of 31st March 2012, certain non-US advisors may be required to be registered with the SEC.
This update explains the new exemptions and the regulations underpinning them.