SEC Adopts Family Office Rule

July 25, 2011
The SEC recently adopted new Rule 202(a)(11)(G)-1 under the Investment Advisers Act to define the term “Family Office.” Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, entities meeting the new definition of “Family Office” will be excluded from the term “investment adviser” under the Investment Advisers Act and, thus, will not be subject to SEC registration and regulation as investment advisers. This update examines the new “Family Office Rule.”