Article
SEC to Regulate Advisors to Private Funds and Others
Among the many looming financial reforms is a requirement that managers of large hedge funds and private equity funds register as investment advisors.
Many smaller funds, family offices and venture capital firms will get some relief. Managers of hedge funds, private equity funds, venture capital funds and family offices who have fewer than 15 clients often rely on the so-called “private advisor exemption” from registering as an investment advisor. However, Title IV of the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” which was signed into law this month, removes this coveted exemption…