Shearman Logo

Investment Funds, Digital Stock

Jan 07, 2010

SEC Amends Investment Adviser Custody Rules

Subscribe

Jump to...

 

In response to the Madoff Ponzi scheme and other frauds, the U.S. Securities and Exchange Commission last May proposed changes to its custody rules that apply to registered investment advisers. Following a public comment period that generated more than 1,300 comment letters, the SEC published its final rules on December 30, 2009 and established an implementation schedule that goes into effect in stages over the course of 2010. This alert discusses the new requirements. Although the SEC decided not to prohibit an adviser from maintaining custody of its client assets, the agency asserted its intent to “encourage the use of custodians independent of the adviser to maintain client assets as a best practice whenever feasible."

Click here to view full memo, "SEC Amends Investment Adviser Custody Rules"

Authors and Contributors

Nathan Greene

Partner

Investment Funds

+1 212 848 4668

+1 212 848 4668

New York

Azam Aziz

Partner

Derivatives & Structured Products

+1 212 848 8154

+1 212 848 8154

New York

Laura Friedrich

Partner

Investment Funds

+1 212 848 7411

+1 212 848 7411

New York

Barnabas Reynolds

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5528

+44 20 7655 5528

London

Paul Schreiber

Of Counsel

Investment Funds

+1 212 848 8920

+1 212 848 8920

New York

Lorna Xin Chen

Partner

Investment Funds

+852 2978 8001

+852 2978 8001

Hong Kong

John Adams

Partner

Investment Funds

+44 20 7655 5740

+44 20 7655 5740

London