TDCI’s Securities Division Announces New Exemption Filing Requirements

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The Tennessee Department of Commerce and Insurance’s (TDCI) Securities Division announces a new requirement that streamlines the registration process for qualifying private fund advisers doing business in Tennessee.

Effective December 25, 2023, a new rule Tennessee Securities Rule 0780-04-03-.05, allows qualifying reporting advisers, private fund advisers, and venture capital firms to file an exemption filing with TDCI’s Securities Division each year. In the past, those firms were required to register with TDCI.

“This requirement of an exemption filing removes the lengthier process of full registration for these firms while continuing to give our team the necessary knowledge and oversight of companies that choose to do business in Tennessee,” said TDCI Assistant Commissioner for Securities Elizabeth Bowling. “By removing the full registration requirement, we believe that Tennessee will be seen as a more welcoming environment for investment – specifically investment from venture capital firms – which, in turn, can lead to greater opportunities for entrepreneurs, more innovation, and growth for the Volunteer State.”

All initial exemption filings and renewal filings must be made through the Investment Adviser Registration Depository (IARD) system. The qualifying advisers must file with the Division each report and amendment thereto that an exempt reporting adviser is required to file with the Securities and Exchange Commission pursuant to SEC Rule 204-4, 17 C.F.R. § 275.204-4.

TDCI’s Securities Division is responsible for enforcing the Tennessee Securities Act of 1980 and protecting the investors of Tennessee by maintaining the integrity of the securities market through the regulation of the securities industry and capital markets of Tennessee.