Exempt Reporting Advisers and Private Fund Advisors

What this video covers

• Why ERAs exist and who qualifies: private fund advisers under $150 million in U.S. assets under management (AUM), plus venture capital fund advisers of any size
• The critical exam trap that the $150 million AUM cap applies to private fund advisers only, not to venture capital fund advisers
• Why 3(c)(1) and 3(c)(7) are Investment Company Act exclusions that define the fund entity itself, not rules that apply to the adviser
• What an ERA must still file: a subset of Form ADV Part 1 items, private fund information, and the 60-day deadline to claim the exemption
• Why federal ERA status does not automatically preempt state registration, and the separate state exemption requirement under the North American Securities Administrators Association (NASAA) model rule
• Why exemption from registration never means exemption from state antifraud authority, which applies to all advisers operating within a state
• How to walk through an exam day scenario and correctly identify which regulator can pursue an ERA for misconduct