Expansive Changes

2010 Expansive Changes

2010 Webinar - Expansive Changes to the Custody Rule: Investment Adviser Compliance with the SEC's Rule

Expansive Changes to the Custody Rule: Investment Adviser Compliance with the SEC's Rule
February 4, 2010,
1:00 pm – 2:15 pm EST

Presenters: IAA General Counsel Karen Barr and IAA Assistant General Counsel Valerie Baruch
Speaker: Melissa A. Roverts, Senior Counsel, Division of Investment Management, SEC

Details:

The SEC adopted significant amendments to the investment adviser custody rule.  Under the new rule, with limited exceptions, advisers that are deemed to have custody over client assets, including advisers that serve as trustees to client accounts or general partners of limited partnerships, or advisers with check-writing authority, are required to undergo an annual surprise exam by an independent public accountant, even if the client assets are held by an independent third-party custodian.  Advisers that are deemed to have custody over client assets solely because they have authority to deduct fees are expected to have policies and procedures in place that address the risk that the adviser or its personnel could deduct fees to which the adviser is not entitled under the terms of the advisory contract.  In addition, advisers or affiliates with physical custody of client funds or securities must undergo an annual surprise exam and must obtain, or have their affiliate obtain, an internal control report from an independent public accountant registered with and subject to examination by the PCAOB, attesting to controls related to safekeeping of client assets. 

The webcast will cover major aspects of the final rule, including:

  • Which firms are required to undergo a surprise examination and/or obtain SAS-70 type reports and what the exams or reports entail
  • The registration and/or qualification requirements for accountants conducting exams or providing reports
  • Policies and procedures that firms that have authority to deduct fees from client accounts are expected to adopt
  • The audit requirements for advisers to pooled investment vehicles
  • The Form ADV and client disclosure requirements
  • The factors used to determine whether an affiliate is “operationally independent” 
  • The compliance dates for all aspects of the final rule

Recording:

To purchase a recording of this webinar, please complete a payment form and return it to IAA Director of Meetings and Events Lisa Gillette at lisa.gillette@investmentadviser.org or at (202) 293-4223 (Fax).