Under the Dodd-Frank Wall Street Reform and Consumer Protection Act and related rules, absent an exemption, most private fund managers are required to register with the US Securities and Exchange Commission (SEC) or, in some cases, state securities authorities. Under the Advisers Act, a person acts as an investment adviser if the person is providing advice “as to the value of securities or as to the advisability of investing in, purchasing or selling securities” for compensation to others. Accordingly, a manager of a fund owning only real estate and not owning any “securities” is not required to register as an investment adviser. However, even managers who are not required to register as investment advisers under the Advisers Act should consider the implementation of policies and procedures similar to those required of registered investment advisers as a best practice.
Continue reading the full article, published by the Pension Real Estate Association.