Family Office Technical Correction Act of 2017

Floor Speech

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Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 3972, the Family Office Technical Correction Act, which passed out of the House Financial Services Committee earlier this month with the unanimous support of my Republican and Democratic colleagues.

This timely legislation provides a technical clarification that makes it very apparent that family offices are considered accredited investors under regulation D.

Under Dodd-Frank, a family office or, in other words, a company that only has family clients, is owned by the family, and is not a public investment adviser can give financial advice to family members without the office registering under the Investment Advisers Act.

The rationale behind this was that family members will look out for one another. Thus, this legislation, for the same reason, allows family offices to count as accredited investors, which would allow them to make private placement investments.

The end result is that more capital will be available for investment in businesses, resulting in more jobs and greater economic opportunity for Americans of all walks of life.

I want to thank Representative Carolyn Maloney and Chairman Hensarling for their leadership on this important legislation, and I urge my colleagues in the House to support the Family Office Technical Correction Act.

Mr. Speaker, I reserve the balance of my time.

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