Sec. 409. FAMILY OFFICES
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## SEC. 409 FAMILY OFFICES ###
(a)In General Section 202(a)(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(11)) is amended by striking ‘‘or (G)’’ and inserting the following: ‘‘;
(G)any family office, as defined by rule, regulation, or order of the Commission, in accordance with the purposes of this title; or (H)’’. ###
(b)Rulemaking **[**[15 U.S.C. 80b-2 note](/us/usc/t15/s80b-2)**]** The rules, regulations, or orders issued by the Commission pursuant to section 202(a)(11)(G) of the Investment Advisers Act of 1940, as added by this section, regarding the definition of the term ‘‘family office’’ shall provide for an exemption that— ####
(1)is consistent with the previous exemptive policy of the Commission, as reflected in exemptive orders for family offices in effect on the date of enactment of this Act, and the grandfathering provisions in paragraph (3); ####
(2)recognizes the range of organizational, management, and employment structures and arrangements employed by family offices; and ####
(3)does not exclude any person who was not registered or required to be registered under the Investment Advisers Act of 1940 on January 1, 2010 from the definition of the term “family office”, solely because such person provides investment advice to, and was engaged before January 1, 2010 in providing investment advice to— #####
(A)natural persons who, at the time of their applicable investment, are officers, directors, or employees of the family office who— ######
(i)have invested with the family office before January 1, 2010; and ######
(ii)are accredited investors, as defined in Regulation D of the Commission (or any successor thereto) under the Securities Act of 1933, or, as the Commission may prescribe by rule, the successors-in-interest thereto; #####
(B)any company owned exclusively and controlled by members of the family of the family office, or as the Commission may prescribe by rule; #####
(C)any investment adviser registered under the Investment Adviser Act of 1940 that provides investment advice to the family office and who identifies investment opportunities to the family office, and invests in such transactions on substantially the same terms as the family office invests, but does not invest in other funds advised by the family office, and whose assets as to which the family office directly or indirectly provides investment advice represent, in the aggregate, not more than 5 percent of the value of the total assets as to which the family office provides investment advice. ###
(c)Antifraud Authority **[**[15 U.S.C. 80b-2 note](/us/usc/t15/s80b-2)**]** A family office that would not be a family office, but for subsection (b)(3), shall be deemed to be an investment adviser for the purposes of paragraphs (1),
(2)and
(4)of section 206 of the Investment Advisers Act of 1940. * * * * * * *
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- 15 USC 80b–2(a)(11)
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