On June 22, 2011, the Securities and Exchange Commission (“SEC”) approved a final rule (“Family Office Rule”) defining “family offices” that will be excluded from the definition of an investment adviser under the Investment Advisers Act of 1940 (“Advisers Act”) and thus will not be subject to regulation under the Advisers Act. The implementation of the Family Office Rule stems from the Dodd Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”).

On October 12, 2010, the SEC issued its proposing release for the Family Office Rule. The SEC received more than 90 comment letters on the proposed rule and made a number of changes in the final rule. The final Family Office Rule significantly expands the family members and entities that may seek advice from a family office and still qualify for the “family office” exclusion from registration....