The SEC's Division of Investment Management has publicly stated that it will review the regulations relating to the Investment Advisers Act of 1940 given the large influx of new RIAs as a consequence of the registration of hedge and private equity fund managers.
These new RIAs, now, account for roughly 40% of all RIAs. IM is looking to determine if it needs to change or adapt the Advisor’s Act to deal with these new investment advisers. Although the SEC is routinely criticized for not adapting to market changes, it seems that the SEC Staff is actually taken a pro-active approach with this issue.
Change, however, is not as quick.