AZ SB1005

Amends Arizona Revised Statutes section 44-3152 to create an exemption from licensing requirements for private fund advisers who meet specific conditions.

Requires private fund advisers advising qualifying private funds to file reports with the Arizona Securities Commission through the IARD and pay an annual fee of $125 for each calendar year the exemption is used.

Establishes conditions for private fund advisers advising retail buyer funds, including limiting beneficial ownership to accredited investors or fund managers/employees, providing written disclosure of services and duties, and obtaining audited financial statements annually.

Provides a transition exemption for retail buyer funds that existed before September 1, 2016 and do not meet the ownership conditions, allowing them to qualify if they cease selling to non-accredited investors and provide required disclosures and financial statements.

Effective date is August 31, 2016, and applies to investment advisers who do not maintain a place of business in Arizona and provide advice solely to qualifying private funds.