On November 19, 2010, the Securities and Exchange Commission (the “SEC”) issued two sets of proposed rules relating to the implementation of amendments to the Investment Advisers Act of 1940, as amended (the “Advisers Act”), contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).

Implementing Rules

The first set of proposed rules (the “Implementing Rules”) addresses the implementation of the new registration requirements. Among the changes contained in the Dodd-Frank Act was the removal of the exemption from registration which enabled investment advisers with fewer than 15 clients to avoid registration with the SEC. The Dodd-Frank Act also increased the threshold for registration with the SEC from $25 million in assets under management to $100 million. In addition to raising this threshold, the Dodd-Frank Act set forth new provisions relating to advisers with assets under management between $25 million and $100 million, or “mid-sized advisers.”