Recently, I posted a summary of the status of state investment advisor registration requirements for private fund managers in the Northwest including the state of South Dakota. On October 24, 2011, the South Dakota Division of Securities issued a revision to their regulations which provide new exemptions from investment adviser registration for those advisers that qualify for the federal private fund adviser exemption or the federal venture capital exemption. S.D. Admin. R. § 20:08:05:15(2) provides that an investment adviser that meets the exemption requirements as set forth in Sections 203(b), 203(l), or 203(m) of the Investment Advisers Act of 1940 as amended, is also exempt from South Dakota’s investment adviser registration requirement. Therefore, if an adviser is a private fund manager that is exempt from registration as a result of the private fund adviser exemption or venture capital exemption, it is also exempt from registration with the South Dakota Division of Securities.
As always, you should consult an attorney who is familiar with securities regulatory issues in assessing whether your particular fund management business is required to register under state law.
© 2011 Alexander J. Davie — This article is for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
