Family offices have grown in the U.S., but that segment remains lightly regulated — and that could be a problem for the financial industry, warned a former counsel at the Securities and Exchanges Commission.
The risks posed by large family offices came under the spotlight after the multibillion-dollar Archegos Capital Management was last week forced to unwind more than $20 billion in trades.
The move led to a severe sell-off in certain stocks including U.S. media giants ViacomCBS and Discovery, rattling the broader market. Shares of several big banks said to be involved in the trades also saw their own stocks tank.
“This could … spread out into a much bigger problem because these family…