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DISB Exempts Private Fund Advisers from Licensing Requirements

Monday, June 13, 2016
New order provides new regulatory relief to support investing in local businesses.

The District of Columbia Department of Insurance, Securities and Banking (DISB) issued an order that exempts certain investment advisers to private funds from the District’s securities licensing requirements.

“Providing a regulatory environment that fosters business growth and opportunity in the District of Columbia is a major goal of DISB,” said Commissioner Stephen C. Taylor. “This action is another way DISB is modernizing its regulations to allow for growth and investment in the District without unduly burdening our small and local business community.”

Previously, DISB had granted temporary licensing exemptions to this group of advisers with between $100 million and $150 million in assets under management. This action makes the regulatory relief permanent and extends it to private fund advisers with less than $100 million in assets under management. In addition, this new exemption enables District private fund advisers to compete better with those in other local jurisdictions.

In February, DISB took a similar regulatory relief action exempting small venture capital fund investment advisers from District securities licensing requirements.

The exemptions from the licensing requirements do not exempt the advisers from compliance with the District’s other securities laws and regulations, including anti-fraud provisions.

To view the order, follow this link.