• US SEC Amends Custody Rule for Registered Investment Advisers
  • June 22, 2010 | Authors: Michael R. Butowsky; Marc R. Cohen; Elizabeth M. Knoblock; Stephanie M. Monaco
  • Law Firms: Mayer Brown LLP - New York Office ; Mayer Brown LLP - London Office ; Mayer Brown LLP - Houston Office ; Mayer Brown LLP - Washington Office
  • On December 30, 2009, the US Securities and Exchange Commission (SEC) published its final rule amending certain custody requirements under the Investment Advisers Act of 1940, as amended (Advisers Act) for registered investment advisers (RIAs). The SEC indicated in the Adopting Release that the amendments were adopted to enhance the safekeeping of investor assets in the wake of several high-profile fraud cases against investment advisers and broker-dealers. Among other things, the amendments to Rule 206(4)-2 under the Advisers Act (Custody Rule) will require surprise examinations and SAS 70 reports for certain RIAs based on their custody of client assets.