Family Offices Seek to Shield Rich Clients From SEC Disclosure

Family offices in the U.S. are trying to avoid regulation that would force them to reveal financial details about their privacy-conscious clients.

Firms that primarily manage the wealth of a single family must register as investment advisers by March 30, 2012, unless they qualify for a new exemption from the U.S. Securities and Exchange Commission. Registering may entail initial fees of $50,000, as well as annual compliance costs of $50,000 to $100,000 or more, according to John Duncan, principal of Duncan Associates in Chicago, which represents family offices and private trust companies. Advisers that register must publicly disclose assets and identifying information about their businesses.