SEC Proposed Rule Would Exclude Single Family Offices from Advisers Act
As required by the Dodd-Frank Act, the SEC has proposed a new rule excluding single family offices from registration and regulation under the Investment Advisers Act. Under the proposed rule, the family office must be owned and controlled by a single family and may not hold itself out to the public as an investment adviser. A single family includes the founder, his/her spouse, their parents and lineal descendants, and their siblings and their lineal descendants. It also would include certain key employees and former family members in certain cases. The proposed rule includes grandfathering provisions with respect to pre-existing exempt family offices. The SEC has indicated that it will not rescind prior exemptive orders. The SEC has said that the Rule seeks to codify the conditions it has generally imposed in prior exemptive orders. It has also indicated that it will still consider exemptive requests outside the Rule.
OUR TAKE: As expected, the SEC has proposed a fairly narrow exclusion from the Advisers Act by limiting the definition of “family member” so that the Rule would only apply to single family offices.
http://www.sec.gov/rules/proposed/2010/ia-3098.pdf
OUR TAKE: As expected, the SEC has proposed a fairly narrow exclusion from the Advisers Act by limiting the definition of “family member” so that the Rule would only apply to single family offices.
http://www.sec.gov/rules/proposed/2010/ia-3098.pdf
Posted by Todd Cipperman at 10/13/2010 5:43 AM 
Categories: Compliance and Operations
Tags: family office adviser registration
Categories: Compliance and Operations
Tags: family office adviser registration
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