Section 48-42-004 - ADDITIONAL REQUIREMENTS FOR PRIVATE FUND ADVISERS TO CERTAIN 3(C)(1) FUNDSIn order to qualify for the exclusion described in section 003, above, of this regulation, a private fund adviser who advises at least one (3)(c)(1) fund that is not a venture capital fund shall, in addition to satisfying each of the conditions specified in subsections 003.01 and 003.02, above, comply with the following requirements:
004.01 The private fund adviser shall advise only those 3(c)(1) funds, other than venture capital funds, whose outstanding securities, other than short-term paper, are beneficially owned entirely by persons who, after deducting the value of the primary residence from the person's net worth, would each meet the definition of a qualified client in SEC Rule 205-3, 17 C.F.R. § 275.205-3, at the time the securities are purchased from the issuer:004.02 At the time of purchase, the private fund adviser shall disclose the following in writing to each beneficial owner of a 3(c)(1) fund that is not a venture capital fund: 004.02A All services, if any, to be provided to individual beneficial owners: 004.02B All duties, if any, the investment adviser owes to the beneficial owners: and004.02C Any other material information affecting the rights or responsibilities of the beneficial owners.004.03 The private fund adviser shall obtain on an annual basis audited financial statements of each 3(c)(1) fund that is not a venture capital fund, and shall deliver a copy of such audited financial statements to each beneficial owner of the fund.48 Neb. Admin. Code, ch. 42, § 004
Adopted effective 5/11/2016.