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A Better Partnership


Mar 2013
March 14, 2013

New SEC Rule may Affect Your Family Office

The massive Dodd-Frank Wall Street Reform and Consumer Protection Act significantly changed many aspects of federal securities laws, including provisions affecting family offices.  Implementing Dodd-Frank, the Securities and Exchange Commission adopted a rule defining a “family office” for purposes of its exclusion from the definition of an “investment adviser.”  Typically, a family office provides investment advice about securities and so, absent an exclusion or exemption, it would be required to be registered and regulated as an “investment adviser.”   March 30, 2012 is the last day on which a family office may rely on the old “private adviser” exemption from registration if, during the preceding 12 months, it had fewer than 15 clients and did not hold itself out to the public as providing these services.  Consequently, family offices need to assess their ownership, control, and clients served in light of the SEC rule’s definitions and related conditions.

We have prepared a complimentary overview summarizing the rule’s context, purpose, and conditions, as well as the consequences of not satisfying the rule’s conditions.  The memorandum highlights a number of commonly recurring scenarios that do and do not come within the rule’s scope and conditions.  This overview memorandum can be downloaded from our website by clicking here.

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.



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