The SEC is warning midsize advisers that they have until December 17 to make the switch to state oversight mandated under Dodd-Frank. After the date passes, firms could lose their registrations.
The deadline specifically applies to advisers with less than $100 million in assets under management. The SEC reports that 2,300 firms have already made the move, but 293 have yet to do so.
As a result, the SEC has issued a notice to the advisers in question that it will be cancelling their registrations unless they take immediate action. According to the notice, “The registrants listed in the Appendix either have not filed a Form ADV amendment with the Commission in 2012, or have indicated on Form ADV that they are no longer eligible to remain registered with the Commission as investment advisers but have not filed Form ADV-W to withdraw their registration. Accordingly, the Commission believes that reasonable grounds exist for a finding that these registrants are no longer in existence, are not engaged in business as investment advisers, or are prohibited from registering as investment advisers under section 203A, and that their registrations should be cancelled pursuant to section 203(h) of the Act.”
To avoid cancellation of their registration, advisers must file a Form ADV amendment indicating that they are eligible for registration or a Form ADV-W to withdraw registration with SEC. In either case, action must be taken by December 17, 2012.