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News December 5, 2005 Issue

SEC to Defer of Effective Date of New Adviser Applications

Attention hedge fund managers getting ready to register with the SEC as investment advisers: regardless of when you file your Form ADV, your registration wonít be declared effective until January 3, 2006, at the earliest.

Thatís a good thing. But for the deferral, new registrants with December 31 fiscal year ends would be hit with their first annual amendment requirement only a few months after filing their initial Form ADV. Thanks to the deferral, however, new registrants with December 31 fiscal year ends wonít have to file their first annual updating amendment until March 31, 2007.

However, if for some reason you want to be declared effective sooner, just make a note to that effect on Schedule D of Form ADV (in the Miscellaneous section), or by calling the SEC IARD Filing Status phone number (202) 551-7250.

Actually, it probably wouldnít hurt to do both. Tell the SEC that you are requesting that your Form ADV registration approval "not be deferred."

To make sure things go smoothly, hedge fund managers should file their Form ADVs no later than December 15, per the recommendation of SEC associate director Jennifer Sawin (IM Insight, October 24, 2005). Thatís a day earlier than some law firms are recommending.