Spouse Equivalent Law

The rule treats direct line descendants and their spouses, spouses, stepchildren, adopted children, foster children and persons who were minors when another family member became their legal guardian as family members. I think it was a bold move by the SEC to include spousal equivalents. They reject the argument of the law on the defence of marriage: because the term “spouse” is generally not defined and a “spouse equivalent” is identified as a category of persons, separated and distinct from a “spouse” who meet the definition of a “family member”. DOMA provides that “the determination of the meaning of any act of Congress or of any decision, regulation, or interpretation of the various offices and administrative agencies of the United States. The word “spouse” refers only to a person of the opposite sex who is a husband or wife. 1 U.S.C. 7. The image is Zazzle`s joint equivalent badge. Failure by a family office to comply with the conditions of the new rules does not prevent the office from providing services to family members.

However, the family office must find another exception, register under the Advisers Act or apply to the SEC for an exemption order. The rule inevitably leads to a definition of “family”. Too cramped and many family offices would be excluded. Too broad and any investor will find an ancestor of the Mayflower. The SEC opted for a 10-generation limit. Tags: Family Office, IA-3220, Rule 202(a)(11)(G)-1, Joint equivalent Rule 202(a)(11)(G)-1 contains three general conditions for entering the Family Office exemption. First of all, family offices are only allowed to advise certain “family clients” on securities. Secondly, family clients must be full owners of the family office and family members and/or family businesses must control the family office. Third, a family office cannot present itself to the public as an investment advisor. Dodd-Frank has created a new exception for family offices.

Previously, they generally operated under the 15-client rule, which was overturned by Dodd-Frank or a private SEC decision. Dodd-Frank left it to the SEC to define a “family office.” .