A significant number of single-family offices have been affected by Dodd-Frank regulations that went into effect in March, according to a new study by The Family Wealth Alliance.
In a survey of 34 SFOs with median assets under supervision of $320 million (mean: $450 million), 32.4% said the reform had had an effect. Fifty-nine percent reported no effect, and 9% were unsure.
New regulatory rules required many family offices to register with the SEC as investment advisors, according to Bob Casey, the Family Wealth Alliance’s head of research.
“Legal fees or other expenses affected 38.2% of participating SFOs,” Casey said. “Reported costs range from $300 to $450,000, and averaged $64,000.”