MId-sized investment advisors (advisors with between $25 million and $100 million in assets under mangagement) will be required to withdraw from SEC registration and become state registered. In view of this, all advisers registered with the SEC as of July 21, 2011 were going to be required to report their eligibility for SEC registration by August 20, 2011. In turn, advisers who reported mid-sized adviser status would have been required to be state registered by October 19, 2011.
However, an April 8, 2011 letter (cited in my article immediately below) from an associate SEC director indicates that the SEC is now expected to consider extending the date by which mid-sized advisers will be required to report their eligibility for SEC registration until the 1st quarter of 2012. Additionally, those no longer eligible for SEC registration would have a grace period giving them time to register with the appropriate state(s) before withdrawing their SEC registration.
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Robert Kiggins, Esq. of McCarthy Fingar LLP, is author of the blog, and may be reached at (914) 385-1024 or rkiggins@mccarthyfingar.com.
Nothing is this blog is intended to be or may be relied upon as specific legal advice. Securities and related laws are complex and facts are different from case to case. Competent counsel should be consulted. Views expressed by the author in this article are his own and not those of any other person.
