Family-Offices May Face Stricter Regulation

Family-offices are noncommercial entities that provide investment management to families worth hundreds of millions or more. While only a few thousand exist, they account for around $1 trillion in assets.

The Senate passed a reform bill last Friday that prolongs the exemption of family-offices from SEC oversight. However, due to the potential for abuse, the House wants family-offices to register with the SEC. A joint Senate and House conference committee will have to hash out the differences between the two bills.

See Thomas Coyle, Family-Office Oversight Still at Stake, Financial Adviser Blog, May 26, 2010. 

Special thanks to Jim Hillhouse (Wealth Counsel) for bringing this to my attention.