Department of Corporations Letter To Midsized Firms

If you are an SEC registered investment adviser with assets under management of between $25 million and $100 million, you should check your mailbox for this October 7 letter from Commissioner Preston Dufauchard. The Commissioner is sending this letter to those firms that are likely to be required to transition to state registration under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Here are some highlights from the letter:

- File ASAP. Your application for California registration must be approved by June 28, 2012. As you might expect, the Department of Corporations is expecting a large number of transition applications.

- Don’t Forget Your Annual Updating Amendment. All SEC registered investment advisers must file an annual updating amendment before March 30, 2011 regardless of whether they have a state application pending.

- You Have a Choice. If your application is submitted and approved by January 1, 2012 you can elect to either have your registration approved for 2011 or request that the application be held and approved effective Janauary 1, 2012. This will affect your fees.