pic-asher.jpgCONTRIBUTED BY
Asher Bearman

Interesting news today out of the SEC, which has hinted that it may delay the effectiveness of the Dodd-Frank Act, currently scheduled to go into effect July 21st of this year, until Q1 2012.

Courtesy of the National Venture Capital Association:

While the proposed rule is still under consideration, we did receive some positive news today regarding an anticipated delay in compliance with any new rule. In [a] letter from the SEC to the North American Securities Administrators Association, released today by the SEC, Associate Director Robert Plaze notes that they anticipate finalizing the rulemaking in advance of the July 21 deadline. However, more importantly, the letter next states that, “…given the time needed for advisers to register and come fully into compliance…, we expect that the Commission will consider extending the date by which these advisers must register and come into compliance … until the first quarter of 2012.”

The full letter is posted on the SEC’s website.

This extension is welcome news considering that we’re still waiting on final versions of the new rules and, as a result, it remains unclear how burdensome the new compliance requirements may be.  Frequent readers of the site know that we’ve been monitoring the Dodd-Frank Act closely given the significant changes it will require of venture capital fund managers.  New readers are encouraged to visit some of our prior posts on the topic:

Our Comment to the SEC’s Proposed Rules under the Adviser’s Act

NVCA Comment to SEC Regarding Adviser’s Act Rules

Foreign Fund Managers – Exemptions under the new Adviser’s Act

**UPDATED** ‘Venture Capital Fund’ – Proposed Definition for Adviser’s Act Exclusion

Read more at the NVCA website or at the SEC’s Dodd-Frank Page.