News

Massachusetts Secretary of State Galvin files rules complementing Dodd-Frank

Massachusetts Secretary of State William F. Galvin filed new provisions yesterday that complement the existent Dodd-Frank rules.

Per the Dodd-Frank Act, advisers of certain investments who were previously exempt from SEC registration will now be required to register with the federal government. Those investments include hedge and private equity funds, the Boston Business Journal reports.

Galvin said that the new rules are meant to adhere to pre-existing Dodd-Frank regulations while protecting the advisers of these investments.

“The purpose of these new rules is to coordinate with the new Dodd-Frank rules while balancing the investor protection which stems from registration,” Galvin said in a statement, according to the Boston Business Journal.

The SEC has already cleared a new regulation that exempts advisers who only advise private funds that comply with Section 3(c)(7) funds. Section 3(c)(7) funds are exempt under the Investment Company Act, which requires that the funds have no more than 499 qualified purchasers as investors.

In addition to Section 3(c)(7) funds, the proposed state regulation also provides more limited exceptions to Section(c)(1) funds, which are required to have less than 100 investors.

Additionally, under the Dodd-Frank Act, investment advisers with assets under $25 million to $100 million will move from federal to state regulation by March 2012.

One Response to Massachusetts Secretary of State Galvin files rules complementing Dodd-Frank

  1. Pingback: Daily Dodd Frank News | Dodd Frank News and Information