SEC Proposes Family Office Rule

The U.S. Securities and Exchange Commission (the "SEC") on October 12, 2010 proposed a new rule, Rule 202(a)(11)(G)-1, under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"), defining the term "family office" for purposes of the exclusion from the definition of "investment adviser" provided by Section 202(a)(11)(G) of the Advisers Act, which was added to the Advisers Act by the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank").¹ The proposed rule represents the SEC's first step toward adopting the required rules to fully implement Dodd-Frank's provisions affecting private fund managers and other currently unregistered investment advisers.²