ARTICLE
20 July 2011

Final Rule Regarding Family Offices

LL
Loeb & Loeb LLP

Contributor

Loeb & Loeb is a premier law firm focused on helping organizations and individuals innovate, grow and evolve in a changing world. Our market-leading practice and industry teams deliver practical insight and strategic solutions in complex deals, high profile disputes, cutting-edge regulatory issues and other matters critical to our clients’ success. The firm has approximately 450 lawyers across eight offices in the United States and Asia. This material may be considered attorney advertising.

On June 22, 2011, to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act") that apply to investment advisers, the Securities and Exchange Commission (the "SEC" or "Commission") adopted a final rule regarding family offices.
United States Finance and Banking

On June 22, 2011, to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act") that apply to investment advisers, the Securities and Exchange Commission (the "SEC" or "Commission") adopted a final rule regarding family offices.

Under the final rule, the family office is exempt from registration with the SEC under the Investment Advisers Act of 1940 (the "Advisers Act") only if (i) the family office provides advice about securities only to certain "family clients," (ii) family clients wholly own the family office and family members and/or family entities control the family office, and (iii) the family office does not hold itself out to the public as an investment adviser. The final rule expands upon each of the three factors.

The attached chart sets forth each proposed rule alongside the final rule, and discusses significant differences between the final and proposed rule.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More