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Missouri Investment Adviser Application Checklist

Missouri Securities Division Audit Unit Information

IA Switch Pre-Registration Exam Report

IA Switch Final Report

Presentation on IA Switch Issues

No Action Letter

No-Action Determination Concerning Private Fund Advisers

IA Switch Letter to IA Firms

December 2011 Letter to Switching Investment Advisers

Pension Administrators No-Action Letter

No-Action Determination on Pending Application at Switch Deadline


Advisory Releases

Advisory Release AR-12-04:

Commissioner of Securities Issues No-Action Determination Contemplating Recent Rulemaking Concerning Missouri Private Fund Advisers

The Commissioner of Securities for the State of Missouri (the “Commissioner”) is issuing this advisory release to alert Missouri’s investment advisers of a recent no-action determination regarding advisers to private funds. The subject no-action letter is similar to relief provided in a July 20, 2011, no-action letter, and also contemplates a rulemaking filed by the Commissioner on April 26, 2012, concerning private funding advisers.

The Securities and Exchange Commission (“SEC”) on June 22, 2011, adopted rules requiring some advisers to private funds to register with the SEC, and eliminated the exemption from registration for private fund advisers previously found at section 203(b)(3) of the Investment Advisers Act of 1940. The elimination of section 203(b)(3) not only impacted federal securities laws, but Missouri securities laws as well.

MO 15 CSR 30-51.180(6) (the “Missouri Private Fund Adviser Exemption”), exempts from registration advisers to certain private funds that are also exempt from federal registration under section 203(b)(3). However, because section 203(b)(3) is no longer effective, the Missouri Private Fund Adviser Exemption is no longer relevant. As a result, investment advisers previously relying on that exemption from state registration may be required to either register or find another exemption to operate under.

Those changes prompted a request for, and the Commissioner’s grant of, no-action relief for EdgeHill Capital Partners, LLC (“EdgeHill”), a Missouri investment adviser relying upon the Missouri Private Fund Adviser Exemption. The Commissioner stated that no enforcement action will be taken against EdgeHill for transacting business as an unregistered investment adviser prior to the sooner of June 28, 2012, or the promulgation of a state regulation similar to the Private Fund Advisers Exemption, if EdgeHill continued its advisory business consistent with the representations made in its request (http://www.sos.mo.gov/securities/advisory.asp?nID=AR-11-04).

More recently, the Commissioner proposed an amendment to the Missouri Private Fund Adviser Exemption to reflect the SEC’s changes, and exempt from registration certain advisers to private funds. That proposed amendment to the Missouri Private Fund Adviser Exemption was submitted by the Commissioner for the rule-making process on April 26, 2012.

Just prior to the Commissioner’s submission of the proposed amendment to the Missouri Private Fund Advisers Exemption, a group of related Missouri investment advisers, including RiverVest Venture Management, LLC (that group hereinafter collectively referred to as the “RiverVest Entities”), submitted to the Commissioner a request for a no-action determination. According to that request, each of the RiverVest Entities either: (1) formerly qualified for the Missouri Private Fund Adviser Exemption; (2) was previously granted no-action relief related to registration as an investment adviser; or (3) is currently exempt from registration as an investment adviser under section 203(l) of the Investment Advisers Act of 1940. For that reason, the RiverVest Entities requested that the Commissioner not take enforcement action against the RiverVest Entities, or their employees, if they continued their current business arrangements and practices in Missouri without registering as an investment adviser.

The Commissioner responded to the RiverVest Entities’ request on May 16, 2012, by issuing a no-action determination in accordance with section 409.6-605(d), RSMo. (Cum. Supp. 2011). The no-action determination provides that the Commissioner will take no action against the RiverVest Entities, or their employees, if they continue their business arrangements and practices consistent with the representations made in their request, prior to the sooner of May 16, 2013, or the final promulgation of the amendment to the Missouri Private Fund Adviser Exemption proposed by the Commissioner on April 26, 2012, or a rule substantially similar to it.

If you have any questions, please contact the Securities Division at (573) 751-4136, or for more information on the impact of Dodd-Frank on securities regulation in Missouri, visit: http://www.sos.mo.gov/securities/iaswitch/

May 17, 2012




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  • September 6, 2012
    The Commissioner of Securities has issued an Advisory Release alerting Missouri's investment advisers and others to a recent report on the Investment Adviser Registration "Switch." Read the release here, and the Report here.

  • July 3, 2012
    The Commissioner of Securities has issued an Advisory Release concerning pending investment adviser registration applications after the Dodd-Frank Act "Switch" deadline. Read the release here.

  • May 17, 2012
    The Commissioner of Securities has issued an Advisory Release concerning a no-action letter and the April 26 rulemaking concerning Missouri Private Fund Advisers. Read the release here.

  • April 26, 2012
    The Commissioner of Securities has issued an advisory release concerning a rulemaking related to an exemption from registration for certain advisers to private funds. Read the release here.

  • March 23, 2012
    The Commissioner of Securities has issued an advisory release on the fast-approaching deadlines and best registration practices for investment advisers switching to state registration. Read the release here.

  • December 30, 2011
    The Commissioner of Securities sent a letter to Missouri Investment Advisers who may switch to state regulation in 2012 under the Dodd-Frank Act. Read the letter here .

  • December 15, 2011
    Advisory Release AR-11-07
    The Commissioner of Securities issued an advisory release summarizing NASAA’s coordinated review program for investment advisers switching to state regulation in 4-14 states. Read the release here.

  • July 20, 2011
    Advisory Release AR-11-04
    The Commissioner of Securities for the State of Missouri issued an advisory release summarizing a No-Action Determination issued in response to a request by an adviser to a private fund. Read the release here.


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