Family Office Technical Correction Act of 2017

Bill: 115-hr-3972
Sponsor: full_name: Rep. Maloney, Carolyn B. [D-NY-12]
Introduced: 2017-10-05
Policy area: Finance and Financial Sector
Subjects: Family relationships

Financial services and investments

Securities
Latest action: action_date: 2017-10-25
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2017-10-05
action_desc: Introduced in House
text: <p><b>Family Office Technical Correction Act of 2017</b></p> <p>This bill provides that family offices and family clients are accredited investors as set forth by the Securities and Exchange Commission (SEC) in Regulation D, which exempts certain offerings from SEC registration requirements but prohibits general solicitation or general advertising with respect to such offerings. (A family office is a company that has no clients other than family clients, is wholly owned and exclusively controlled by family clients, and does not hold itself out to the public as an investment advisor.)</p>

action_date: 2017-10-23
action_desc: Reported to House with amendment(s)
text: <p><b>Family Office Technical Correction Act of 2017</b></p> <p>(Sec. 2) This bill provides that family offices are accredited investors as set forth by the Securities and Exchange Commission in Regulation D, allowing such investors to purchase certain unregistered securities. (A family office is a company that has no clients other than family clients, is wholly owned and exclusively controlled by family clients, and does not hold itself out to the public as an investment advisor.)</p> <p>A family office is an accredited investor if:</p> <ul> <li>the office manages assets in excess of $5 million, </li> <li>the office was not formed for the purpose of acquiring the offered securities, and </li> <li>a qualified person is directing the purchase. </li></ul>

action_date: 2017-10-24
action_desc: Passed House amended
text: <p><b>Family Office Technical Correction Act of 2017</b></p> <p>(Sec. 2) This bill provides that family offices are accredited investors as set forth by the Securities and Exchange Commission in Regulation D, allowing such investors to purchase certain unregistered securities. (A family office is a company that has no clients other than family clients, is wholly owned and exclusively controlled by family clients, and does not hold itself out to the public as an investment advisor.)</p> <p>A family office is an accredited investor if:</p> <ul> <li>the office manages assets in excess of $5 million, </li> <li>the office was not formed for the purpose of acquiring the offered securities, and </li> <li>a qualified person is directing the purchase. </li></ul>

tv_txt: I 115th CONGRESS 1st Session H. R. 3972 IN THE HOUSE OF REPRESENTATIVES October 5, 2017 Mrs. Carolyn B. Maloney of New York introduced the following bill; which was referred to the Committee on Financial Services A BILL To clarify that family offices and family clients are accredited investors, and for other purposes.

1. Short title This Act may be cited as the Family Office Technical Correction Act of 2017 . 2. Accredited investor clarification Any person who is a family office or a family client, as defined in section 275.202(a)(11)(G)–1 of title 17, Code of Federal Regulations, shall be deemed to be an accredited investor, as defined in Regulation D of the Securities and Exchange Commission (or any successor thereto) under the Securities Act of 1933.

tv_txt: IB 115th CONGRESS 1st Session H. R. 3972 IN THE HOUSE OF REPRESENTATIVES AN ACT To clarify that family offices and family clients are accredited investors, and for other purposes.

1. Short title This Act may be cited as the Family Office Technical Correction Act of 2017 . 2. Accredited investor clarification (a) In General Subject to subsection (b), any family office or a family client of a family office, as defined in section 275.202(a)(11)(G)–1 of title 17, Code of Federal Regulations, shall be deemed to be an accredited investor, as defined in Regulation D of the Securities and Exchange Commission (or any successor thereto) under the Securities Act of 1933. (b) Limitation Subsection (a) only applies to a family office with assets under management in excess of $5,000,000, and a family office or a family client not formed for the specific purpose of acquiring the securities offered, and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of the prospective investment.

Passed the House of Representatives October 24, 2017. Karen L. Haas, Clerk.

tv_txt: IB Union Calendar No. 266 115th CONGRESS 1st Session H. R. 3972 [Report No. 115–362] IN THE HOUSE OF REPRESENTATIVES October 5, 2017 Mrs. Carolyn B. Maloney of New York introduced the following bill; which was referred to the Committee on Financial Services October 23, 2017 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Omit the part struck through and insert the part printed in italic A BILL To clarify that family offices and family clients are accredited investors, and for other purposes.

1. Short title This Act may be cited as the Family Office Technical Correction Act of 2017 . 2. Accredited investor clarification Any person who is a (a) In General .—Subject to subsection (b), any family office or a family client, client of a family office, as defined in section 275.202(a)(11)(G)–1 of title 17, Code of Federal Regulations, shall be deemed to be an accredited investor, as defined in Regulation D of the Securities and Exchange Commission (or any successor thereto) under the Securities Act of 1933. (b) Limitation Subsection (a) only applies to a family office with assets under management in excess of $5,000,000, and a family office or a family client not formed for the specific purpose of acquiring the securities offered, and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of the prospective investment.

October 23, 2017 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: IIB 115th CONGRESS 1st Session H. R. 3972 IN THE SENATE OF THE UNITED STATES October 25, 2017 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To clarify that family offices and family clients are accredited investors, and for other purposes.

1. Short title This Act may be cited as the Family Office Technical Correction Act of 2017 . 2. Accredited investor clarification (a) In General Subject to subsection (b), any family office or a family client of a family office, as defined in section 275.202(a)(11)(G)–1 of title 17, Code of Federal Regulations, shall be deemed to be an accredited investor, as defined in Regulation D of the Securities and Exchange Commission (or any successor thereto) under the Securities Act of 1933. (b) Limitation Subsection (a) only applies to a family office with assets under management in excess of $5,000,000, and a family office or a family client not formed for the specific purpose of acquiring the securities offered, and whose purchase is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of the prospective investment.

Passed the House of Representatives October 24, 2017. Karen L. Haas, Clerk.