Recently, more than 60 FOX members took part in a survey of family offices by the Private Investor Coalition (PIC). PIC is an authority on legislative and regulatory issues affecting single family offices, and serves as a resource for disseminating information on legislative, regulatory and compliance issues impacting single family offices.

PIC was interested in understanding how the current Family Office Rule—which excludes in-laws of a lineal descendant from the definition of family member—affects single family offices. Recently, the SEC has granted four exemptions for the in-law issue, but says it does not believe this is a widespread problem. If the results of the survey show that this is an issue for family offices, PIC hoped it might be able to get the SEC to reconsider the definition.

Overall, a total of 151 single family offices participated in the survey. The results indicated that, while just 27% of family offices say they are directly affected by the current Family Office Rule, nearly twice as many offices (50%) said they would serve in-laws if permitted.

Below is a chart containing a summary of the results from the survey:

As a result of the survey, PIC will likely be pursuing this matter with the SEC in an effort to modify their Family Office Rule.

Thank you to the FOX members who participated, and stay tuned for further updates on this issue.