In addition, the Act significantly narrows the exemptions from registration contained in (i) Section 203(b)(1) of the Advisers Act (which generally exempts from SEC registration intrastate advisers) to expressly exclude investment managers that advise Private Funds, and (ii) Section 203(b)(6) of the Advisers Act (which generally exempts from SEC registration advisers registered with the Commodities Futures Trading Commission (“CFTC”) as commodity trading advisers) to limit that exception to advisers who do not “predominately” provide securities-related advice. Under the Act, the SEC is required to take into account the size, governance and investment strategy of Private Funds when prescribing regulations.
