Aug 1, 2010 12:00 PM

New law requires family offices to register as investment advisers — but the SEC still needs to define the law's terms and scope

By Rashad Wareh

On July 21, 2010, many single family offices watched President Obama sign into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act).¹ Title IV of the Act is the Private Fund Investment Advisers Registration Act of 2010, which imposes new regulatory oversight on investment fund managers, requiring them to register with the Securities and Exchange Commission (SEC) and to make significant changes to their operations. It also repeals the private adviser exemption to the registration requirement, which enabled many family offices to avoid registration with the SEC. Title IV takes effect immediately, although it includes a one-year transition period for the provisions relating to registration of family offices. Although the Act provides new ways to avoid registration, including one specifically for family offices, the SEC is empowered to define the scope and terms of the family office exclusion. Until the SEC acts, the true impact of the Act is unknown.

In light of the new law, family offices must immediately determine what to do. The SEC should hear the voice of family offices during the rulemaking process to ensure that the final regulations for the family office exclusion appropriately accommodate the full range of structures and approaches employed by family offices.

Topics of Interest

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

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