President Barack Obama has signed into a law the sweeping Dodd-Frank legislation – voted through in Congress last week – that is designed to prevent a repeat of the recent financial turmoil, but which has left wealth managers facing continued uncertainty.

"Because of this law, the American people will never again be asked to foot the bill for Wall Street's mistakes," Obama said at a signing ceremony attended by some Wall Street bankers, business leaders and lawmakers, according to a report by Reuters.

Obama vowed that there will be no further bailouts of banks with taxpayers’ money.

As previously reported by this publication, for wealth managers and family offices, the Dodd-Frank Wall Street Reform and Consumer Protection Act is the beginning of a new era that will initially be characterized by much uncertainty.

The heated battle over what type of fiduciary standard the Securities and Exchange Commission will impose and who will be affected has drawn the lion’s share of attention and scrutiny.

But family offices are also in the Security and Exchange Commission’s cross-hairs, and the final regulations that govern them may not be known for years, legal experts say. To date, family offices have not had to register with the SEC under the Investment Advisers Act of 1940 if they have fewer than 15 clients.

This key exception has been eliminated by the new law, which goes into effect one year after its passage. A new exception for family offices is expected, but first the SEC has to come up with a formal definition of a “family office”, a process that no one thinks will be completed a year from now.

To view FWR’s recent analysis of the law and its potential implications, click here.