• SEC Proposed Amendment to the Investment Adviser Custody Rule
  • August 12, 2003
  • Law Firm: Sutherland Asbill & Brennan LLP - Washington Office
  • On July 18, 2002, the Securities and Exchange Commission ("SEC") issued a release proposing to amend (the "Proposed Amendment") Rule 206(4)-2 (the "Rule") under the Investment Advisers Act of 1940 (the "Advisers Act"). The Rule currently requires an investment adviser that has custody of client funds or securities to deposit client funds in bank accounts and to segregate and identify client securities and hold them in safekeeping.