Dodd-Frank Wall Street Reform and Consumer Protection Act

On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") into law.   Under Dodd-Frank, federally registered investment advisers who manage assets under $100 million will need to transition their registration from federal to state (there are certain exceptions).  The deadline to transition is July 16, 2011.   The Department will update this page as information is made available. Please feel free to check back often. If you have any questions please call (916) 322-6270 or the Department’s Customer Service Center at (866) 275-2677.

Updates

  • On July 21, 2011, an emergency regulation became operative to delay the elimination of the current exemption from registration for investment advisers who are deemed "private advisers" under the Wall Street Regulatory Reform and Consumer Protection Act (the Dodd-Frank Act).  Private advisers may continue to rely on the exemption from registration for an additional 180 days.  (See PRO 02/11 E, Commissioner's May 13, 2011 Letter)

     
  • 07/18/11 - The Commissioner of Corporations has adopted emergency regulations amending Section 260.204.9 of Title 10 of the California Code of Regulations extending the current exemption from registration for investment advisers who are deemed “private advisers”.  These emergency regulations become effective July 21, 2011 and remain in effect for 180 days.  (PRO 02/11 - E)
  • 05/13/11 - The Department of Business Oversight will soon issue emergency regulations to address the July 21, 2011 elimination of the current exemption from registration for investment advisers who are deemed "private advisers" under the Wall Street Regulatory Reform and Consumer Protection Act ("Dodd-Frank").
  • 04/11/11 - Deadline for Investment Advisers to Comply With The Dodd-Frank Act May Be Extended - Due to the time needed to revise the Investment Advisor Registration Depository (IARD) and other timing issues, the SEC is considering extending the time for investment advisers to come into compliance with the requirements of The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). Specifically, investment advisers transitioning from SEC registration to state registration and advisers relying on the “private advisers” exemption likely will be given until at least the first quarter of 2012 to comply with the requirements of Dodd-Frank  (See SEC letter to NASAA).

The Department will continue to work with the SEC and registered investment advisers to ensure the smooth and timely implementation of Dodd-Frank.  Updates will be posted to this website as additional information becomes available.

 

Correspondence

10/07/11 - Notice to Mid-Sized Investment Advisory Firms Transitioning to California Regulation [Full Text of Letter] | [California Instructions]

05/13/11 - The Department of Business Oversight will soon issue emergency regulations to address the elimination of the current exemption from registration for investment advisers who are deemed "private advisers". [See Full Text of Letter]

01/21/11 - Commissioner's update on mid-sized private fund advisers, and comment letter on the SEC's proposed definition of "Venture Capital Fund."   In light of the repeal of the "private advisers" exemption under the Investment Advisers Act of 1940, the Commissioner is considering amending Rule 260.204.9 of Title 10 of the California Code of Regulations.

11/09/10 - The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was signed into law by President Barack Obama on July 21, 2010. Dodd-Frank promotes consumer protection and improves stability in the financial markets. One requirement of Dodd-Frank is the transition of some investment advisers from regulation under the Securities Exchange Commission (SEC) to state regulation. Specifically the law requires that investment advisers that manage assets under $100 million must now register with state securities regulators in the states in which they operate. There are exemptions to this provision in the law. The transition to state regulation must be completed by July 16, 2011. [See full text of letter]

 

Frequently Asked Questions

Dodd-Frank FAQS

Common Questions Regarding the Pending Transition for Mid-Sized Investment Advisers