SEC Family Office Rule (Rule 202(a)(11)(G)-1)

Jurisdiction and status

US federal law. Section 202(a)(11)(G) of the Investment Advisers Act of 1940 excludes family offices, as defined by the SEC, from the definition of investment adviser; the SEC's definition is Rule 202(a)(11)(G)-1 (17 CFR 275.202(a)(11)(G)-1), adopted in 2011 (76 FR 37994) and last amended in 2016 (81 FR 60457). Because it is an exclusion rather than an exemption, a qualifying office is not an investment adviser for Advisers Act purposes: no registration, no Form ADV and no adviser-specific rules.

The three conditions

A family office falls within the rule only if all three hold:

1. Family clients only. It has no clients other than family clients. If a person who is not a family client becomes a client as a result of the death of a family member or key employee, or another involuntary transfer from one, that person is treated as a family client for one year after the transfer of legal title to the assets is completed.
2. Family ownership and control. It is wholly owned by family clients and is exclusively controlled, directly or indirectly, by family members or family entities.
3. No holding out. It does not hold itself out to the public as an investment adviser.

Who is a family client

The rule defines family clients broadly but finitely. They include family members (lineal descendants, including by adoption, stepchildren and foster children, of a common ancestor no more than 10 generations removed from the youngest generation, and their spouses or spousal equivalents), former family members, key employees and, within limits, former key employees, charitable organisations funded exclusively by family clients, certain trusts and estates, and companies wholly owned by, and operated for the sole benefit of, family clients. Whether a particular relative, employee or vehicle qualifies turns on the rule's definitions.

What the rule does not change

The rule removes the Advisers Act; it does not remove other obligations. A family office that, as an institutional investment manager, exercises investment discretion over accounts holding section 13(f) securities worth at least $100 million on the last trading day of any month of a calendar year files Form 13F. For private fund investments, a family office with more than $5 million of assets under management that is not formed for the purpose, and whose investment is directed by a person with knowledge and experience in financial and business matters, is an accredited investor under Rule 501(a)(12), and its family clients can qualify under Rule 501(a)(13); qualified purchaser status depends on investments owned. FinCEN's investment-adviser anti-money laundering (AML) rule, whose effective date is postponed to 1 January 2028, states that it does not cover family offices. Entities created in the US, including family office vehicles, have been exempt from beneficial ownership reporting under the Corporate Transparency Act since FinCEN's interim final rule published on 26 March 2025, which a later final rule made permanent.

Legal definition and market usage

In market usage, "single-family office" is applied to many offices that would not meet the rule: offices with a few unrelated co-investors, offices partly owned by outside executives, or offices that market co-investment programmes. Those offices are investment advisers unless another exemption applies; many multi-family offices register as registered investment advisers (RIAs). Conversely, "family office" is not a regulated status in itself. Labels in databases should follow evidence of the office's structure and filings, not its self-description.

Not the same as

• Single-Family Office (SFO): Single-family office is a market description of an organisation; the Family Office Rule is the legal test for excluding it from the Advisers Act.
• Multi-Family Office (MFO): A multi-family office serving unrelated families cannot generally rely on the rule and typically registers as an investment adviser.
• Registered Investment Adviser (RIA): An RIA is registered under the Advisers Act; a family office within the rule is not an investment adviser at all.

How it is classified

• An office that advises any person outside the family-client definition (beyond the one-year involuntary-transfer period, and apart from the rule's grandfathering of certain advice relationships that began before 1 January 2010) is outside the rule.
• An office with any owner who is not a family client, or controlled by non-family persons, is outside the rule.
• An office that markets advisory services to the public is outside the rule.
• An office that files Form ADV as a registered adviser is not relying on the rule.

Common mistakes

• Calling the rule an exemption from registration. It is an exclusion from the definition of investment adviser.
• Assuming a family office can accept a few friends or co-investors as clients without losing the exclusion.
• Assuming the rule exempts the office from every federal filing. Form 13F and other regimes still apply on their own terms.

Edge cases

• Key employees can be family clients and invest alongside the family, subject to the rule's conditions.
• A death or other involuntary transfer that moves assets to a person who is not a family client triggers the one-year grace period, not immediate loss of the exclusion. A former spouse remains a family client as a former family member.

Questions

Sources

1. 17 CFR 275.202(a)(11)(G)-1 - Family offices. U.S. Securities and Exchange Commission (CFR text via eCFR; LII mirror), eCFR current as of 2026-09-29; adopted 2011 (76 FR 37994), amended 2016 (81 FR 60457). Status: in force (checked 2026-10-01). 17 CFR 275.202(a)(11)(G)-1(a)–(c), (d)(4), (d)(6)–(8); source note (76 FR 37994, 2011-06-29; 81 FR 60457, 2016-09-01) — supports: Exclusion; three conditions; one-year rule for involuntary transfers; grandfathering; family client, family member, former family member and key employee definitions; adopted 2011, amended 2016
2. 17 CFR 230.501 - Definitions and terms used in Regulation D (accredited investor). U.S. Securities and Exchange Commission (CFR text via eCFR; LII mirror), eCFR current as of 2026-09-29; last amended 2025-02-18 (technical, 90 FR 9684); last substantive amendment effective 2020-12-08 (85 FR 64234). Status: in force (checked 2026-10-01). 17 CFR 230.501(a)(12)(i)–(iii), (a)(13) — supports: Family offices with more than $5 million AUM, not formed for the purpose, investment directed by a knowledgeable person; their family clients
3. Accredited Investor Definition (final rule), Release No. 33-10824. U.S. Securities and Exchange Commission, Adopted 2020-08-26; 85 FR 64234 (2020-10-09); effective 2020-12-08. Status: in force (checked 2026-10-01). Release 33-10824 — supports: 2020 addition of family office and family client categories
4. 17 CFR 240.13f-1 - Reporting by institutional investment managers of information with respect to accounts over which they exercise investment discretion (Form 13F). U.S. Securities and Exchange Commission (CFR text via eCFR; LII mirror), eCFR current as of 2026-09-29; no substantive amendment since eCFR baseline. Status: in force (checked 2026-10-01). 17 CFR 240.13f-1(a)(1) — supports: Form 13F: institutional investment managers with investment discretion over accounts holding at least $100 million of 13(f) securities on the last trading day of any month
5. Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (final rule), 89 FR 72156. Financial Crimes Enforcement Network (Federal Register via govinfo), Published 2024-09-04; original effective date 2026-01-01. Status: adopted; effective date postponed to 2028-01-01 (checked 2026-10-01). 89 FR 72156 (Summary: "this final rule also does not cover foreign private advisers or family offices") — supports: IA AML rule scope excludes family offices
6. Beneficial Ownership Information Reporting. Financial Crimes Enforcement Network, Reflects final rule announced 2026-08-11. Status: current (checked 2026-10-01). Beneficial Ownership Information Reporting page (opened 2026-10-02): alert of 2025-03-21; final rule note — supports: US companies exempt from BOI reporting since the interim final rule published 2025-03-26, made permanent by final rule
7. Delaying the Effective Date of the AML/CFT Program and SAR Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (final rule), 91 FR 36. Financial Crimes Enforcement Network (Federal Register via govinfo), Effective as of 2025-12-31; published 2026-01-02. Status: in force (checked 2026-10-01). 91 FR 36: DATES — supports: IA AML rule effective date 2028-01-01

• Family Office
• Single-Family Office (SFO)
• Multi-Family Office (MFO)
• Registered Investment Adviser (RIA)
• Accredited Investor
• Family Governance