“For OMAM, the transaction will free up capital to redeploy
into our global distribution and asset management franchise,” said Peter L.
Bain, OMAM’s chief executive officer. “We remain committed to building our
multi-boutique business around long-term, institutionally-driven, active asset
management.”
Subject to certain conditions, Dwight is expected to become a
part of GSAM in the second quarter of 2012.
Advisers Must Prepare for Transition from SEC to State Registration
Mid-sized advisers must transition their
registration from the Securities & Exchange Commission (SEC) to their
applicable state authorities and are encouraged to begin the process as soon as
possible to avoid serious consequences.
As of July 2011, the SEC estimates that approximately 3,200
SEC-registered advisers would have to transition down to their applicable state
authorities.
According to Section 410 of the Dodd-Frank Act,
regulation of registered investment advisers (RIAs) with AUM between $25
million and $100 million must be registered by the states. The Securities &
Exchange Commission (SEC) has set March 30, 2012, as the deadline for all SEC
registered firms to file an amendment to their ADV forms. If AUM is below $90
million, the RIA must transition to state registration by June 28.
“It has been our experience that some states can take
up to four months to process registrations, and we anticipate that this
transition will create a serious bottleneck for many states,” said Zachary
Gronich, founder of RIA in a Box. “If your firm has less than $90 million AUM,
it must start transitioning well in advance. There are very serious
consequences which must not be ignored.”
The final rules of the Dodd-Frank Act established a
new “buffer zone” for mid-sized advisers. Under the old limits between SEC and
State registration, there was a $5 million buffer from $25 million to $30 million
to allow firms the flexibility of not having to switch back and forth between
SEC and State registration. This buffer zone was amended and raised to $90
million to $110 million, meaning a mid-sized adviser must register with the SEC
at $110 million AUM. Once a state-registered adviser registers and is approved by
the SEC at the $100 million level, that adviser will not be required to
de-register back to state level until their assets drop below $90 million.
As more firms start switching to state authority, the
timeframes for registration are expected to increase, Steve Thomas, director
of Lexington Compliance, a division of RIA in a Box, said during a webinar
sponsored by the firm. He added that it’s critical to begin the filing process
as soon as possible to avoid being out of business in the interim.
“[It’s a] huge problem for firms to wait until the
last minute,” he cautioned.
Gronich said some states like California have more
intensive registration processes than others.“If you’re in California, do not
delay,” Gronich said, adding that the state has a minimum two months’ registration
process.
Gronich also mentioned Florida, Massachusetts,
Virginia, Michigan and Texas as having long or intensive registration
processes.