In a very encouraging development, the SEC has indicated that they intend to grant exemptions from the strict definition of “family” in the Family Office Rule to allow family offices to serve relatives of spouses who are related through the marriage and not lineal descendents of the family’s founder. The Family Office Rule came out of the Dodd-Frank legislation.

 

This means that family offices will be able to serve the parents and siblings of the individuals who marry into the family.  For now, the exemptions need to be requested on an individual case basis as the rules have not been modified.  However, the precedent is in place to indicate the SEC will grant the exceptions.

 

Martin E. Lybecker of FOX member firm Perkins Coie has written an excellent explanation of the developments which is available via this link.