Last week, NVCA made a number of tools developed by members of its CFO Task Force available to all members. These tools, accessed through the NVCA members only website, are intended to shed light for firms having to choose - and then navigate - the Exempt Reporting Adviser (ERA) or Registered Investment Adviser (RIA) paths.

Examples of what these tools provide:

• a spreadsheet that can be used to evaluate whether your existing funds qualify for grandfathering as an ERA;
• a second spreadsheet which helps test whether a contemplated investment is “qualified” or must be counted as part of the non-qualified basket;
• prototype documents for the firm CFO to provide and discuss with their deal team

After the ERA/RIA rules were announced by the Securities and Exchange Commission, it became clear that, while many of the NVCA member firms would qualify for exemption from registration (ERA status), certain qualifications had to be met in a timely manner and certain rules would apply going forward to ensure and maintain exemption. While less extensive than the procedures and compliance duties of registered investment advisers (RIAs), there is still a process that applies to exempt reporting advisers (ERAs). Running amok of the ERA rules can have significant, and generally irreversible consequences.

Several members of the NVCA CFO Task Force, who have been working alongside NVCA staff since 2003, took the initiative to create templates, checklists, and other tools to use in their own firms. Recognizing the value of these as a starting point, NVCA made them available as-is for peer CFOs. We now are pleased to make these available as-is to all NVCA members for discussions with respective counsel and staff.  Any questions on these tools should be directed to John Taylor (jstaylor (at) nvca(dot) org).