TBA Law Blog


Posted by: Julia Wilburn on Jul 9, 2025

The Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division recently amended its current rules to allow certain investment advisers, private fund advisers and venture capital firms whose only clients are private funds and who meet the new rule’s definition to be exempt from registration and custody requirements. However, these firms will be required to notice file and annually renew the filing with the division. The division says there has been confusion as to who should be utilizing the new exemption with some relying on the de minimis exemption and believing custody requirements do not apply. To clarify, the division says that the de minimis exemption never exempted an investment adviser from the requirement to comply with custody rules. However, those who meet the requirements of the newly created private fund exemption, found at Tennessee Securities Rule 0780-04-03-.05 (1)(c), are not subject to the custody requirements. To help investors, the division has prepared an FAQ to provide greater clarification.