On June 22nd, the Securities and Exchange Commission ("SEC") adopted new final rules defining what "family offices" will be excluded from the definition of an investment adviser under the Investment Advisers Act of 1940 ("Advisers Act") and thus will not be subject to regulation under the Advisers Act. As required by the Dodd-Frank Act, the scope of the new rule is generally consistent with the conditions of exemptive orders that the SEC previously issued to family offices. The new rule, Rule 202(a)(11)(G)-1 contains three general conditions. First, the exclusion is limited to family offices that provide advice about securities only to certain "family clients." Second, it requires that family clients wholly own the family office and family members and/or family entities control the family office. Third, it precludes a family office from holding itself out to the public as an investment adviser. The family office exclusion has not been expanded to permit family offices to provide advisory services to multiple families or to clients who are not family members, other than certain key employees. The rules will be effective 60 days after publication in the Federal Register, which is expected during the week of June 27. SEC Release No. IA-3220. See also SEC Press Release; Paredes Open Meeting Comments (discussing new rule's treatment of non-profit and charitable organizations advised by a family office).