The SEC today adopted rules requiring advisers to hedge funds and other private funds to register with the SEC.  The new SEC rules also establish new exemptions from SEC registration and reporting requirements for certain advisers, and reallocate regulatory responsibility for advisers between the SEC and states.

The rules adopted by the Commission implement core provisions of the Dodd-Frank Reform Act regarding investment advisers, including those that advise hedge funds.

“These rules will fill a key gap in the regulatory landscape.  In particular, our proposal will give the Commission, and the public, insight into hedge fund and other private fund managers who previously conducted their work under the radar and outside the vision of regulators."  -- SEC Chairman Mary Schapiro. 

In addition, the Commission amended rules to expand disclosure by investment advisers, particularly about the private funds they manage, and revised the Commission’s pay-to-play rule.

Transition Period.   The rules implement a transitional exemption period so that private advisers, including hedge fund and private equity fund advisers, newly required to register do not have to do so until 3/30/12.  The rules regarding exemptions for venture capital fund and certain private fund advisers are effective 7/21/11. 

For further details, go to:   [SEC PR 11-133, 6/22/11, "SEC Adopts .."]