tailieunhanh - Investor Bulletin: Transition of Mid-Sized Investment Advisers from Federal to State Registration

Usually you want to compare the performance of different issues and the broad market in terms of % change from open. This way you won’t get caught in the trap of thinking that stocks that have gapped up are stronger than they actually are. In a nutshell, look for issues that are outperforming the broad market by a good margin for longs and ones that are lagging the market for shorts. If the S&P is up from the open and a stock you are interested in daytrading long has opened flat and is now up . | Investor Bulletin Transition of Mid-Sized Investment Advisers from Federal to State Registration The SEC s Office of Investor Education and Advocacy is issuing this Investor Bulletin to make investors aware of upcoming changes in the registration rules for some investment advisers. On July 21 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act Dodd-Frank Act was signed into law. The Dodd-Frank Act amends certain provisions of the Investment Advisers Act of 1940 by delegating generally to the states responsibility over certain mid-sized investment advisers - . those that have between 25 million and 100 million of assets under management AUM . As discussed in greater detail below the new law and rules adopted by the SEC will require a significant number of advisers currently registered with the SEC to withdraw their registrations with the SEC and to switch to registration with one or more state securities authorities. This means that state securities authorities will have primary regulatory authority over a substantial number of investment advisers that previously were subject to primary regulation by the SEC. Larger investment advisers generally those with over 100 million ofAUM will continue to be registered with the SEC and will be subject to federal regulation state investment adviser laws requiring registration licensing and qualification have been preempted for these advisers . These changes began to apply to new applicants for SEC registration on July 21 2011 but will not apply to advisers currently registered with the SEC until 2012. New AUM Thresholds for SEC Registration The Dodd-Frank Act and SEC rules increased the threshold above which all investment advisers must register with the SEC from 30 million to 110 million of AUM. Prior to July 2011 an investment adviser regulated by the state in which it maintained its principal office and place of business generally was prohibited from registering with the SEC unless the adviser had at least