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From Mark Berman, who as former SEC lawyer is a recognised expert on SEC regulation and founder of CompliGlobe Limited (www.compliglobe.com): At a just-concluded open meeting, the US Securities and Exchange Commission voted unanimously to adopt new Rule 206(4)-8, an anti-fraud rule under s.206 of the US Investment Advisers Act of 1940. The new rule would, according to the SEC, ban advisers to pooled investment vehicles from “making false or misleading statements to, or otherwise defrauding, investors or prospective investors in those pooled vehicles”.

No mention was made of the proposal to adopt the “accredited natural person” test for private placements of certain pooled investment vehicles.

The new rule will come into effect 30 calendar days after the adopting release is published in the Federal Register. It is expected that this release will appear in the Federal Register within the next 10-14 days. Barring unforeseen developments, non-US advisers should anticipate the rule would be in force by the end of August 2007.

When the SEC publishes the adopting release for new Rule 206(4)-8, we will prepare and send you a detailed Briefing Note that discusses the rule and provides you with some practice tips on how this rule may have an impact on the activities of non-US advisers, whether or not registered with the SEC. For now, this Briefing Note summarises the provisions of the new rule and the discussion at ......................

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