Alert February 14, 2012

SEC Staff Posts Responses to Questions about the Family Office Exclusion under the Advisers Act

The staff of the SEC’s Division of Investment Management (the “Staff”) posted on the SEC website a set of responses to questions about Rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (the “Family Office Rule”), which provides an exclusion from the definition of “investment adviser” for a family office that meets the Rule’s conditions.  (See the June 23, 2011 Goodwin Procter Alert for a detailed discussion of the Family Office Rule.)  Topics covered are (1) ownership and control of the family office, (2) key employees, (3) family members, (4) non-advisory services and (5) the grandfathering provision.  The Staff expects to update the posting from time to time.