Good news for New York mid-sized advisers!

Mid-sized private fund advisers that maintain their principal office in New York State remain subject to SEC registration under the new rules.   (This is because New York State happens to be one of only 3 states that does not subject advisers to examination).

Mid-sized advisers are those with $25 million to $100 million in assets under management.

This is good news because these mid-sized advisers do not need to transition to state regulation, which is as burdensome as SEC registration yet without the same imprimatur and benefits.

Regulation of Private Fund Managers

Even certain private fund managers that are exempt from registering as investment advisers under the federal Investment Advisers Act are nevertheless required to submit reports to the SEC by completing specific items of Form ADV.  These advisers are known as “Exempt Reporting Advisers”.  Though exempt from registration, they are not exempt from fling reports with the SEC.