SEC Staff Provides Guidance for Adviser M&A and Reorg Transactions
The staff of the SEC’s Investment Management Division has provided guidance clarifying that, absent a change in control, an internal reorganization of an investment adviser does not require a new registration. The staff opines that an unregistered entity that acquires the assets of an affiliate RIA need only file a succession by amendment, so long as the same parent company continues to control both entities. The staff offered similar guidance with respect changes in jurisdiction and form of organization. However, a change in control would require the filing of a succession by application. In either event, the registrant must file within 30 days of the subject event.
OUR TAKE: With expected consolidation coming in the asset management sector, the staff offers practical regulatory guidance that will facilitate transactions.