For the study in which The Family Wealth Alliance surveyed 34 SFOs having median assets under supervision of US$320 million, 32.4% said that the reform had had an effect, while 59% reported no effect, and 9% were unsure.
Bob Casey, the Family Wealth Alliance’s head of research, said that new regulatory rules required many family offices to register with the SEC as investment advisors.
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"Legal fees or other expenses affected 38.2% of participating SFOs. Reported costs range from US$300 to US$450,000, and averaged US$64,000," Casey said.
Dodd-Frank also abolished the private advisor exemption for family offices, and required the SEC to come up with a new family office exemption. This applied to offices with only family clients and only family owners.
Only 38.2% of family offices surveyed were found to have a succession plan even though participants considered succession a primary challenge.
According to the report, 66.7% of the survey respondents said that they had sufficient expertise to evaluate investment vehicles and strategies, while 35.3% outsourced the chief investment officer function to handle their investments.
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By GlobalDataFurther, 51.5% stated that they reviewed investment policy or practices, which is up from 39.5% last year; and 27.3% actually changed investment policy.
