07.28.21
House Panel to Vote on Increasing Family Office Oversight
by: Mark Schoeff
The House Financial Services Committee will soon vote on a bill that would boost regulatory oversight of some financial advisory family offices. Currently, advisory companies that manage the finances of wealthy families do not have to register with the Securities and Exchange Commission (SEC). The bill would require any family office that has more than $750 million in assets under management would have to register with the SEC as “exempt reporting advisors.” This designation would subject them to a “lighter regulatory regime” similar to that which applies venture capital funds. The bill would also repeal a provision in the Dodd-Frank financial reform law that allows family offices with clients who are non-family members to avoid SEC registration. The bill is intended to give the SEC more information about the size, portfolios, and leverage taken on by family offices.
Read the full article on InvestmentNews.