Skip to content
Subscriber Only

Archegos Shows Need to Monitor Family Offices, Regulator Says

  • CFTC Commissioner Berkovitz criticizes agency’s exemptions
  • It’s ‘a vivid demonstration of the havoc’ that can be wreaked
Dan Berkovitz

Dan Berkovitz

Photographer: Andrew Harrer/Bloomberg

Updated on

For a top U.S. derivatives regulator, the recent implosion of Archegos Capital Management sends a clear message: Washington needs to keep much better tabs on so-called family offices like the one that Bill Hwang was running.

Dan Berkovitz, a Democratic commissioner on the Commodity Futures Trading Commission, blasted his own agency for taking too light a touch with the investment funds. Since 2019, the CFTC has been pulling back on its oversight of the vehicles, which don’t take outside investor money but can rival hedge funds or commodity-pool operators in terms of holdings, he said in a statement Thursday.