As a result of the U.S. Dodd-Frank Act signed into law in July 2020, several asset managers have discovered the need for SEC registration, as mandated by the Securities and Exchange Commission (SEC). While some may qualify for exemptions, it is crucial to understand the rules and exemptions finalized by the SEC in June 20211 regarding full registration as an investment adviser. SEC registration or requirement of informing SEC is not an obligation for the Foreign Private Advisers. Moreover, they along with those exclusively managing the venture capital funds may be eligible for an exemption from SEC registration under the exempt reporting adviser exemption.
Exempt reporting advisers must prepare and file certain sections of Form ADV Part 1A and are eligible for SEC examination. Kroll can assist exempt reporting advisers in the preparation and filing of Form ADV and in determining whether your firm fits within an exemption, as more fully outlined below:
Firms managing up to $25 million and possessing at least one managed account are required to have SEC registration or register with the state(s) in which they operate.
Firms that manage up to $150 million in private funds only or manage strictly venture capital funds, may be eligible for a registration exemption.
Firms that manage less than $25 million in assets under management should review local state law to identify any registration requirements.
Our global compliance team also has an in-depth understanding of regulatory regimes across jurisdictions, including the SEC, FCA and SFC. We have helped firms to build and maintain the compliance infrastructure, policies and procedures that meets regulatory standards. Once firms have the SEC registration, we provide ongoing compliance support and advisory services including SEC mock examinations, , on-site SEC examination support, annual self-assessments, regulatory filings/reporting and alerts on changes in regulations.