Yes - state-specific ERA framework
Accredited
No
No
Disclaimer
Summary
Private fund advisers in DC
Although a tiny jurisdiction, there are a non-trivial number of hedge fund managers operating in the District of Columbia, no doubt in part thanks to its relatively generous exemption framework introduced by an order dated June 10, 2016. In DC, advisers solely to one or more private funds and with less than $150m AUM are exempt from the definition of investment adviser. Moreover, such exempt private fund advisers have no audit requirement and they are allowed to take on accredited investors that are not also qualified clients.
DC-specific rules
Washington D.C. does not follow the NASAA model rule for exempt reporting advisers, but its custom exemption framework could be viewed as more lenient.
Investor restrictions
While NASAA model rule states and other states limit exempt private fund advisers to taking on investors that are qualified clients, DC allows investors in such funds to be "merely" accredited.
Reporting requirements
Form ADV must be filed. The DC-specific notice filing is an additional $250.
Audit requirement
There is no annual audit requirement or surprise examination regime for exempt private fund advisers in DC.
AUM threshold nuances
Exempt private fund advisers must file notice file with DC via form ADV between $0 and $150m AUM. At $110m+ AUM, Form ADV must also be filed with the SEC.
