IA Compliance: The Full 360° View East 
March 7-8, 2019 | Washington, D.C.

UPCOMING WEBINARS

Conquering Current Compliance Challenges
Dec. 12, 2018 | 2:00 - 2:30 PM EST
 
RECORDED WEBINARS

Conquering Current Compliance Challenges
Recorded: November 14, 2018 
 
HANDBOOKS
  Includes: 9 Best Practices, 3 Proposed Disclosure Mockups
and a 60-minute Audio Webinar

The Adviser's Guide to SEC Advertising and Marketing Rules
Includes: 23 Best Practices, 5 Peer-tested tools and 15 No Action Letters

The SEC Examinations Priorities Handbook
Includes: 28 Best Practices, 20 Document Request Letters and 6 OCIE Risk Alerts

Cybersecurity Strategies to Ensure SEC Compliance, 2nd Edition
Includes: 24 Best Practices, 16 Tools, 4 Risk Alerts and IM Guidance

 
CUSTODY OVERVIEW
Perhaps no Advisers Act rule challenges firms more than the custody rule.
 
It’s technically known as rule 206(4)-2. The intent is to protect client assets.
 
It was revised after the financial crisis in a way that has rankled some. While the ability to debit fees is technically custody, that practice alone fails to hold the firm to some of the rule’s stricter dictates, such as having to undergo a surprise exam or to pay for an independent audit.
 
Thank Bernie Madoff for the attention to this rule. That’s why firms now must have a reasonable belief that custodians are sending clients quarterly statements.
 
But these are the simpler aspect of the rule. The complexity grows because many firms struggle to determine if a given situation – and the industry can generate a countless number of such examples – constitutes custody or not.
 
Because examiners continue to focus on custody, so must you. As you can see, this is one rule that causes the SEC to name CCOs in enforcement actions.

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