Sunday, 23 October 2016
Last updated 1 day ago
Oct 13 2010 | 1:17pm ET
Family offices may skirt Securities and Exchange Commission registration after all under a newly-proposed rule.
While the Dodd-Frank financial reform law will require all private fund managers, including hedge funds and private equity funds, with more than $150 million to register with the SEC, the SEC has proposed to exempt family offices. The rule, if adopted would apply only to family offices that manage money or provide advice to family members and some employees of entities owned or controlled by family members.
Firms that hold themselves out as investment advisers to the public would not be covered.
The new exemption is necessary as the Dodd-Frank law does away with the 15-investor exemption, which most family offices relied on.
The SEC is accepting comment on the new fund until Nov. 18.