SEC registration of Private Fund Managers formally deferred to 30th March 2012

Non US private fund managers and advisers hoping for favourable amendments to the SECs Dodd Frank implementation proposals will be feeling slightly disappointed. On the 22^nd of June the SEC commissioners voted 3-2 in favour of implementing the Private Fund advisor rules largely as set out in their consultation proposals published November 2010 with very little reasoning or discussion of the potential cross jurisdictional impact of the rules.

As communicated previously, the date for firms to come into compliance in Quarter 1 2012 has now been set for 30th March 2012.

SEC Chairman Mary L. Schapiro stated that “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 funds who previously conducted their work under the radar and outside the vision of regulators.” This statement, has ramifications for managers based outside the US with the very distinct possibility of dual regulation by stealth. Proposals for Exempt Reporting Adviser status, record keeping requirements and the right of SEC inspection now look likely to be implemented impacting many UK and European based investment managers.

IMS is holding a seminar on 14 July 2011 at the Westbury Hotel in London where our US and UK SEC specialists will provide further insight into the next steps for impacted firms and how we have been working  to make this transition to SEC and FSA oversight as smooth as possible.  Please click here for further details and the register for this event.