Lawyers and securities experts said that a multibillion-dollar family office like Archaeobus could avoid disclosing the 13F, but it would require the needle to stretch: the firm could only manage the money for Mr. Hwang and her husband – Other family members, Nidhi or his charity, which operated on the same floor of the Midtown Manhattan office building. If the company sells enough stock to fall below the $ 100 million threshold before the end of each quarter, it may be able to skip the 13F filing. It could also request confidential treatment from the SEC to keep such disclosures private, lawyers and experts said.
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Archeogos was founded to create filings for the SEC It had its own central index key number – But a search for documents returns no results.
The SEC has opened an informal investigation into Archeogos and the spillover effect of its collapse, causing billions of dollars in damage to banks around the world. Regulators have declined to comment on the investigation.
Senator Sherrod Brown, Chairman of the Senate Banking Committee Sent letters Half a dozen banks, including Credit-Suisse, Goldman Sachs and Morgan Stanley – traded with the archives, seeking information about their dealings with Mr. Hwang’s firm. This includes information about any transaction that would be “subject to regulatory reporting with the SEC”
The 13F filing rules apply to “registered investment advisors and exempt reporting advisers who manage accounts on behalf of others, including advisors with separately managed accounts, private funds, mutual funds, and pension plans.” They have to file if they have $ 100 million or more “discretion” in securities at the end of the quarter.
Former SEC lawyer Nicholas Morgan said a family office can only get around the need for stock reporting in rare circumstances. A partner in Paul Hastings’ white-collar defense practice, Mr Morgan, said “it would be out of the norm”.
After Archeogus’ failure, Americans sent for financial reform, an advocacy group Letter to the SEC Calling for a review of 13F Feelings and whether gaps in the disclosure process led to registration waivers for family offices, which control about $ 6 trillion in assets, according to Campden Wealth, which allows wealthy families to research and networking opportunities. Provides.