January 17, 2022

Volume XII, Number 17

Advertisement
Advertisement

January 15, 2022

Subscribe to Latest Legal News and Analysis

January 14, 2022

Subscribe to Latest Legal News and Analysis

SEC (Securities and Exchange Commission) Risk Alert Identifies Common Adviser Custody Rule Deficiencies

On March 14, the Office of Compliance Inspections and Examinations of the Securities and Exchange Commission released a National Exam Program Risk Alert (Risk Alert). The Risk Alert discussed common deficiencies in respect of Rule 206(4)-2 under the Investment Advisers Act of 1940 (Custody Rule) that were reported by SEC staff in conducting investment adviser examinations.

In the Risk Alert, the SEC identified four primary categories of deficiencies:

Failure by an adviser to recognize situations in which it has custody under the Custody Rule;

Failure to meet the Custody Rules surprise examination requirements;

Failure to satisfy certain qualified custodian” requirements under the Custody Rule; and

Failure to properly engage independent auditors or otherwise comply with the requirements for audits

of pooled investment vehicles under the Custody Rule.

For additional details regarding the nature of the deficiencies commonly identified and SEC guidance on compliance with the Custody Rule, the Risk Alert may be found here.

©2022 Katten Muchin Rosenman LLPNational Law Review, Volume III, Number 77
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Our Corporate Practice provides sophisticated transactional representation and business counseling to national and global companies in a wide range of industries. Attorneys in the practice work closely with those from other disciplines to provide our clients with comprehensive representation in their business transactions.

Every attorney in our Corporate Practice is dedicated to making sure that each client receives a high degree of personal attention, and that the correct combination of legal talent is assigned to each matter. We believe that our clients’ business objectives should...

310-788-4690
Advertisement
Advertisement
Advertisement