On September 30, 2011, the Securities and Exchange Commission (the “SEC”) issued a notice of intent to approve the filing fees for exempt reporting advisers filing Form ADV and private fund advisers filing Form PF (the “Notice”) [1].
FORM ADV FEES FOR EXEMPT REPORTING ADVISERS
On June 22, 2011, the SEC issued a release (the “Release”) [2] adopting new Rule 204-4 under the Investment Advisers Act of 1940 (the “Advisers Act”), which requires exempt reporting advisers to file portions of Form ADV with the SEC through the Investment Adviser Registration Depository system (“IARD”) and pay a filing fee approved by the SEC to the Financial Industry Regulatory Authority (“FINRA”). In the Release, the SEC assumed the filing fees for exempt reporting advisers would be the same as those charged registered investment advisers. However, on further consideration, the SEC has determined that a single fee is appropriate for all such exempt reporting advisers regardless of their assets under management. According to the Notice, the filing fee for exempt reporting advisers is expected to be $150 for initial and annual reports on Form ADV. This fee will apply beginning on the date the SEC publishes an order approving the fee in the Federal Register. The SEC expects to issue the order unless a hearing is ordered.
FORM PF FEES FOR PRIVATE FUND ADVISERS
On January 26, 2011, the SEC and the Commodity Futures Trading Commission issued a joint release (the “Joint Proposal”) [3] proposing new Rule 204(b)-1 under the Advisers Act. Proposed Rule 204(b)-1 would require hedge fund advisers and other private fund advisers to periodically report certain information regarding the private funds they advise on Form PF. The Joint Proposal requires advisers to file Form PF electronically, but left open the selection of the filing system and the operator for later consideration. In the Notice, the SEC determines that FINRA will develop and maintain the filing system as an extension of IARD. The recommended filing fees for proposed Form PF are $150 for the proposed quarterly filings and $150 for the proposed annual filings. The fee will become effective starting on the effective date of proposed Rule 204(b)-1.