On June 22, 2011, to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) that apply to investment advisers, the Securities and Exchange Commission (the “SEC” or “Commission”) adopted a final rule regarding family offices.

Under the final rule, the family office is exempt from registration with the SEC under the Investment Advisers Act of 1940 (the “Advisers Act”) only if (i) the family office provides advice about securities only to certain “family clients,” (ii) family clients wholly own the family office and family members and/or family entities control the family office, and (iii) the family office does not hold itself out to the public as an investment adviser. The final rule expands upon each of the three factors.

The attached chart sets forth each proposed rule alongside the final rule, and discusses significant differences between the final and proposed rule.

If you have any questions or wish to discuss the new rules, please contact Stephen Cohen at or Erika Clampitt at .

Loeb & Loeb’s Dodd-Frank Financial Reform Task Force monitors key issues surrounding approval of the Dodd-Frank Wall Street Reform and Consumer Protection Act that are relevant to a broad spectrum of firm clients in the financial services industry. The multidisciplinary Task Force is comprised of attorneys across core practice areas - including general corporate, private equity, securities, mergers and acquisitions, consumer protection and banking and finance - who are focused on analyzing the historic legislation and interpreting the significant business implications for financial institutions and commercial companies nationwide.

This client alert is a publication of Loeb & Loeb LLP and is intended to provide information on recent legal developments. This client alert does not create or continue an attorney client relationship nor should it be construed as legal advice or an opinion on specific situations.

Circular 230 Disclosure: To assure compliance with Treasury Department rules governing tax pactice, we inform you that any advice (including in any attachment) (1) was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty that may be imposed on the taxpayer, and (2) may not be used in connection with promoting, marketing or recommending to another person any transaction or matter addressed herein.