Financial Regulatory Reform and Single Family Offices

At the the 2011 FOX Financial Executives Forum, the president of the Private Investor Coalition describes how this group of 65 single family offices has worked with Congress and the SEC to secure a broad definition of family offices under terms of the Dodd-Frank Act. 

• The new SEC rule defining “family office” and exemption qualifications are as favorable as wealth owners and family office executives could hope. 
• A family office that on July 21, 2011 meets these criteria for exemption – has fewer than 15 clients and does not hold itself out to the public as an investment adviser – is exempt from registration until March 30, 2012. 
• A family office that does not meet the old exemption requirements and need time to meet the new ones should consult legal counsel now. 
• A family office that is not exempt under the SEC’s final rule has limited options: reorganize so it is in compliance with securities law, register as an investment adviser, close, apply for an exemption from registration as an investment adviser, or become a private trust company.