Rhode Island joins a growing list of states that have adopted, or propose to adopt, rules or orders providing a state level private fund adviser exemption to investment adviser registration. These states include California, Colorado, Indiana, Maine, Massachusetts, Michigan, Virginia and Wisconsin. The Rhode Island exemption, effective May 17, 2012, provides managers to private funds, such as hedge and private equity funds, with an exemption to investment adviser registration in the state provided the adviser or its affiliates are not subject to “bad boy” disqualification provisions under Rule 262 of federal Regulation A and that the adviser electronically files for such exemption and any amendments through the IARD system with the SEC as provided under Rule 204-4 of the Investment Advisers Act of 1940 (including a $300 filing fee).
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