By: Irwin M. Latner, Patrick D. Sweeney
Herrick, Feinstein LLP, New York, NY
The Senate has passed the Private Fund Investment Advisers Registration Act of 2010, which, if enacted in its present form, would significantly affect hedge fund advisers, hedge fund products, and federal and state regulatory
resources.
The Act seeks to eliminate the private investment adviser exemption from registration under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"). It would require all investment advisers to register with the SEC or in most cases with a state securities regulator, unless another exemption from registration were available. In fact, the Senate bill would exempt foreign private advisers who qualify for a modified version of the former private investment adviser exemption, advisers to small business investment companies, and advisers to venture capital funds, private equity funds and "family offices," under definitions the SEC will determine. As a result, the Senate bill as a whole is squarely focused on the registration of investment advisers to hedge funds. Click here to read thet entire alert.
