In an unusual release, the SEC has issued a no-action letter, not to a particular entity or individual, but in response to a request by the American Bar Association. The no-action letter addresses particular issues arising from the DC Circuit Court's opinion in Goldstein vs. SEC, which vacated rule 203(b)(3)-2 under the Investment Advisers Act of 1940. An analysis of the Goldstein decision is at SECLaw.com.
The decision threw a significant amount of doubt into the registration of hedge fund advisers. Advisers who registered under the rule were left questioning the impact of the decision on their obligations, if any, under the Act.
To the Commission's credit, the no-action letter clarifies much of the uncertainty, and answers most of the outstanding questions.
I will post a detailed review of the no-action letter at SECLaw.com as soon as possible. The link above will take those who cannot wait directly to the no-action leter.
