I 
117TH CONGRESS 
1ST SESSION H. R. 4620 
To amend the Investment Advisers Act of 1940 to limit the exemption 
provided for family offices from the definition of an investment adviser, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2021 
Ms. OCASIO-CORTEZ introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Investment Advisers Act of 1940 to limit 
the exemption provided for family offices from the defini-
tion of an investment adviser, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REGULATION OF FAMILY OFFICES. 
(a) FAMILY
OFFICE
SIZE
LIMITATION.—Section 
202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 
80b–2(a)) is amended— 
(1) in paragraph (11), by striking ‘‘;; (G) any 
family office, as defined by rule, regulation, or order 
of the Commission, in accordance with the purposes 
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of this title’’ and inserting ‘‘; (G) any covered family 
office’’; 
(2) by redesignating the second paragraph (29) 
as paragraph (31); and 
(3) by adding at the end the following: 
‘‘(32) COVERED FAMILY OFFICE.— 
‘‘(A) IN
GENERAL.—The term ‘covered 
family office’ means a family office with less 
than $750,000,000 in assets under manage-
ment. 
‘‘(B) 
RULEMAKING.—The 
Commission 
shall further define the term ‘covered family of-
fice’, by rule, in accordance with the purposes 
of this title. In issuing such rule, the Commis-
sion— 
‘‘(i) shall exclude any person who is 
subject to a final order described in section 
15(b)(4)(H) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o(b)(4)(H)); and 
‘‘(ii) may include a family office with 
fewer assets under management than the 
threshold described under subparagraph 
(A), if the Commission, by rule, determines 
the family office is highly leveraged or en-
gaged in high-risk activities that the Com-
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mission determines warrants inclusion, as 
appropriate to protect investors.’’. 
(b) EXEMPTION OF AND REPORTING BY COVERED 
FAMILY OFFICES.—Section 203 of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b–3) is amended by adding 
at the end the following: 
‘‘(o) EXEMPTION OF AND REPORTING BY COVERED 
FAMILY OFFICES.— 
‘‘(1) IN GENERAL.—The Commission may pro-
vide an exemption from the registration require-
ments under this section to any covered family of-
fice. 
‘‘(2) REPORTING.—The Commission shall re-
quire investment advisers exempted by reason of this 
subsection to maintain such records and provide to 
the Commission such annual or other reports as the 
Commission determines necessary or appropriate in 
the public interest or for the protection of inves-
tors.’’. 
(c) REMOVAL OF GRANDFATHER PROVISION.—Sec-
tion 409 of the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act (15 U.S.C. 80b–2 note) is amend-
ed— 
(1) in subsection (b)— 
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(A) in paragraph (1), by adding ‘‘and’’ at 
the end; 
(B) in paragraph (2), by striking ‘‘; and’’ 
and inserting a period; and 
(C) by striking paragraph (3); and 
(2) by striking subsection (c). 
Æ 
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