Key takeaways 

• The SEC has adopted a final rule defining "family offices" that are exempt from regulation under the Investment Advisers Act of 1940. 
• The rule defines "family office" as a company with three key characteristics: (i) it has no clients other than current and former members of a single family and certain family trusts, estates, key employees, charitable entities and family companies; (ii) it is wholly owned by the family clients and exclusively controlled by family members and/or family entities; and (iii) it does not hold itself out to the public as an investment adviser. The exclusion does not apply to multi-family offices. 
• The SEC's rule allows family offices that do not meet the requirements of the family office exemption and that are not registered under the Advisers Act on July 20, 2011 in reliance on the private adviser exemption to defer registration under the Advisers Act until March 30, 2012.