06.30.2011
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Updates
SEC Adopts Amendments to Investment Advisors Act
On Wednesday, June 22, 2011, the SEC adopted amendments to the Investment Advisors Act, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). The amendments require advisors to hedge funds and other private funds to register with the SEC, expand disclosure requirements for investment advisors, revise pay-to-play rules, establish addition exemptions from SEC registration and reporting requirements for certain advisors, and reallocate regulatory responsibility between the various states and the SEC. There is a transitional exemption period requiring registration by March 30, 2012 for those advisors previously not required to do so.
SEC Adopts Rule Defining "Family Office"
On Wednesday, June 22, 2011, the SEC adopted a rule defining "Family Offices," which are excluded from the Investment Advisors Act of 1940. This definition implements requirements under the Dodd-Frank Act. Historically, family offices were not required to register with the SEC because of an exemption for investment advisors with fewer than 15 clients; however, the Dodd-Frank Act eliminated this exemption, necessitating a definition of "Family Offices" so as to exempt them from registration. The new rule allows those persons managing their own family's financial portfolios to determine if they should be excluded from the Investment Advisers Act.
Fed Announces Final Debit Card Interchange Fee Rules
On Wednesday, June 29, 2011, the Fed announced a final rule on debit card interchange fees, which prohibits network exclusivity arrangements and routing restrictions. The new rules aim to establish standards for assessing whether debit card interchange fees are reasonable and proportional to the costs incurred by issuers. The new rules raise the interchange fee cap to 21 cents per transaction and 5 basis points multiplied by the value of the transaction while allowing banks to charge more if certain fraud prevention standards are met. This represents a substantial increase from the prior proposal of a 12 cent cap plus an allowance for fraud costs. Issuers who, together with their affiliates, have assets of less than $10 billion are exempt from the interchange fee standards.
Read the Federal Reserve press release
© 2011 Perkins Coie LLP