The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act") was signed into law by the US President on 21 July, 2010.
Non U.S. investment advisers to private funds may be required to register with the SEC and comply with certain rules and requirements that are applicable only to SEC registered investment advisers. These requirements include rules and provisions relating to performance fee arrangements, custody of client assets, marketing of advisory services and products, disclosures to the SEC, clients and investors on Form ADV, establishment of a compliance program and appointment of a chief compliance officer.
However, the Act exempts certain foreign private advisers from SEC registration and reporting/recordkeeping requirements. To qualify, advisers must meet all of the following criteria:
have no place of business in the United States; have fewer than 15 clients and investors in the United States in private funds advised by the adviser at any time; have assets under management attributable to U.S based clients and investors in private funds it advises of less than $25 million or such higher amount as the SEC may, by rule, deem appropriate; and neither hold itself out...