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set a July 21 deadline for changes to the Investment Advisers Act in Title
IV: The Private Fund Investment Advisers Registration Act. This
included the expiration of the private adviser exemption from
registration under the Investment Advisers Act, the addition of an new
exemption for "venture capital fund advisers" and the increase in the threshold
for registration with the SEC to $100 million.
proposed a new Form ADV in November to deal with these changes. But the
final form has not been published.
proposed a definition of "venture capital fund adviser" in November. The
final definition has not been published.
With the increase in the registration threshold to $100
million, about 4,000 investment advisers will be moved to the state authorities
for supervision. Many states are still in the middle of revising their statutes
and regulations to deal with the changes.
Since the SEC has a 45 day review period on the Form ADV,
the filing deadline is June 6. That's just two weeks away. Throw in Memorial
Day weekend in the middle of that to lose a few more days.
In April, the SEC hinted that they would extend the July
21 deadline. The IARD registration system would not be ready for the new
Form ADV until the end of 2011. It sounded like the SEC is not ready.
I think it's unrealistic for the SEC to release the new
regulations and forms in the next two weeks and expect their regulated
constituents to be able to pull the pieces together. Actually, it's probably
unrealistic to expect that the SEC will be ready in the next two weeks. They
keep talking about have the regulations in place by July 21. That's 45 days too
late. Looking at this week's SEC meeting, the subject is not on the agenda.
This week, I'm sitting down to start registering on the
old Form ADV. The boxes don't fit very well and some of the dollar amounts are
wrong. It may be a waste of time, but we are out of time.
additional commentary on developments in compliance and ethics, visit Compliance Building,
a blog hosted by Doug Cornelius.
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