Compliance Solutions for Investment Advisers

Registration Transition – SEC Backs Off Automatic De-registration

The SEC Final Rule Release that sets forth the increase in assets under management (AUM) threshold for SEC registration clearly states that the SEC is going to automatically deregister on June 28, 2012, any adviser that does not have the requisite AUM when filing their annual amendment. The SEC has backed off of this which will allow an SEC-registered adviser that reports less than the required $90 million in AUM on their annual amendment to stay SEC registered if, sometime before the June 28th deadline, they pop up over the $90 million mark. All the adviser would then need to do to stay SEC registered is file an other than annual amendment that reports the increased AUM.

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