Family offices suddenly a growing part of the regulatory agenda (Business Insider and ThinkAdvisor)

Even before the name Archegos became known for the wrong reasons, family offices were slated for another look by the SEC. The rule allowing family offices to be exempt from SEC registration is planned for review this year, but now the spotlight has grown for looking further at regulatory oversight options. FrontLine’s Founder and President Amy Lynch states that family offices are very in tune with staying within the guidelines that keep them from being designated as an investment adviser managing outside money. However, post Archegos, Ms. Lynch sees the SEC considering the implications of large family offices and how they can affect markets and counterparties. She adds that the SEC may seek to require registration of family offices over a certain size or set new reporting requirements for them to disclose trading volumes and transaction amounts based on size or leverage. See Business Insider (subscription required), “Secretive family offices flew under the regulatory radar for years. Now in the Archegos aftermath, the ultrarich are bracing for unwanted attention.” Also see ThinkAdvisor, “Why Family Offices Are in SEC’s Crosshairs”