On October 12, 2010, the Securities and Exchange Commission
("SEC") released for comment a new proposed Rule
202(a)(11)(G)-1 (the "Proposed Rule"). The Proposed Rule
defines what will constitute a "family office" within the
meaning of Section 202(a)(11)(G) of the Investment Advisers Act of
1940, as amended (the "Advisers Act"), implemented by
Section 409 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the "Dodd-Frank Act"). Any firm falling
within the definition of a family office set forth in the Proposed
Rule will be exempt from the definition of "investment
adviser" within the meaning of the Advisers Act.
At present, many family offices that would otherwise be required
to register under the Advisers Act rely on the so-called
"private adviser exemption" from registration as an
investment adviser provided by Section 203(b)(3) of the Advisers
Act . Title IV of the Dodd-Frank Act eliminates the private adviser
exemption, effective July 21, 2011. As a
