Investment Management

By: Irwin M. Latner, Patrick D. Sweeney, Richard M. Morris
Herrick, Feinstein LLP, New York, NY

On October 12, 2010, the SEC proposed Rule 202(a)(11)(G)-1 to define "family offices," which will be excluded from the definition of "investment adviser" under the Investment Advisers Act of 1940, as amended,

and invited comment. This is one of the first proposed rules to interpret the new obligations of private fund managers under the Dodd-Frank Wall Street Reform and Consumer Protection Act.1 The proposed rule provides the definitional details requested by Congress in the Dodd-Frank Act. In its proposed rule, the SEC focused on single family offices that typically manage assets in excess of $100 million. A family office that satisfies the SEC criteria will be exempt from the provisions of the Advisers Act. In addition to these conditions, the SEC has included certain "grandfathered" investment advisers in the definition of "family office" as required by the Dodd-Frank Act.  Click here to read the entire article.