Foreign Investment Advisers: Traps for the Unwary in the Proposed SEC Rules

December 13, 2010 -- On November 19, 2010, the SEC proposed rules implementing the new exemption for foreign private advisers from SEC registration introduced by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new exemption will become effective on July 21, 2011. It relies in substantial part on the SEC's current position with respect to the registration requirements for foreign investment advisers, but expands the universe of foreign investment advisers required to register with the SEC by including the number of investors and the assets under management in private funds managed by foreign investment advisers in determining their eligibility to rely on the exemption. The proposed SEC rules imlementing the private adviser exemption further expand the number of foreign investment advisers that will in the future be required to register with the SEC. For a detailed description, please download the pdf here.