• SEC Adopts Rule Defining “Family Office” Exclusion Under the Investment Advisers Act
  • September 21, 2011 | Authors: Lawrence D. Frishman; Anastasia T. Rockas
  • Law Firm: Skadden, Arps, Slate, Meagher & Flom LLP - New York Office
  • On June 22, 2011, the Securities and Exchange Commission (the “SEC”) adopted rule 202(a)(11)(G)-1 (the “Final Rule”), defining family office and related terms for purposes of the exclusion of family offices from the definition of investment adviser under the Investment Advisers Act of 1940 (as amended, the “Advisers Act”), as amended by the Private Fund Investment Advisers Registration Act of 2010 (the “Registration Act”). The exemptions under the Final Rule are generally broader than the exemptions that the SEC initially proposed on October 12, 2010 (the “Proposed Rule”). The Final Rule expands the class of individuals and entities included in the definition of family clients and allows for the ownership of the family office by family clients, instead of the more limited class of family members. The Final Rule became effective on August 29, 2011.