Are You Ready? A Guide to SEC Registration Preparedness

July 21, 2009

Unregistered fund advisers are certainly not unregulated. Many unregistered fund advisers are currently subject to certain provisions of the Investment Advisers Act of 1940, as amended, including provisions regarding: prohibitions on certain performance-based fees; contract assignments; prohibitions on engaging in any fraudulent, deceptive or manipulative acts; and the prevention of the misuse of material, nonpublic information. However, SEC registration would subject fund advisers to all of the provisions of the Advisers Act and the rules adopted thereunder. Although this article focuses on SEC registration preparedness for fund advisers, fund advisers that are not subject to SEC registration most likely will be subject to similar provisions under state law. Click here for our recent article published in FINalternatives.