In enacting the Dodd-Frank Act, Congress significantly altered the regulatory landscape for hedge fund advisers by eliminating (effective July 21, 2011) the fewer-than-fifteen client exemption from registration pursuant to Section 203(b)(3) of the Investment Advisers Act of 1940. At the same time, Congress increased the assets under management threshold for registration as an investment adviser with the SEC. As discussed in this video, these changes will result in a significant increase in California’s oversight of investment advisers, including those that manage hedge funds.

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