{"id":557,"date":"2017-02-27T16:12:23","date_gmt":"2017-02-27T16:12:23","guid":{"rendered":"http:\/\/localhost\/?p=557"},"modified":"2017-02-27T16:12:23","modified_gmt":"2017-02-27T16:12:23","slug":"the-custody-rule-clarified-again","status":"publish","type":"post","link":"https:\/\/bdia.pli.edu\/index.php\/2017\/02\/27\/the-custody-rule-clarified-again\/","title":{"rendered":"The Custody Rule Clarified (Again)"},"content":{"rendered":"<p>In a recent Risk Alert, the staff of the Office of Compliance Examinations and Inspections (\u201cOCIE\u201d) of the Securities and \u00a0Exchange Commission (\u201cSEC\u201d) observed that one of the most frequent deficiencies identified in OCIE\u00a0examinations was the failure of investment advisers to recognize that they might be deemed to have custody of client assets for purposes of Rule 206(4)-2<br \/>\n(\u201cCustody Rule\u201d) under the Investment Advisers Act of 1940 (\u201cAdvisers Act\u201d).\u00a0On February 21, the staff of the SEC\u2019s Division of Investment Management\u00a0provided additional guidance under the Custody Rule that addressed three\u00a0situations where there have been significant questions as to whether an\u00a0investment adviser has custody of client assets:<\/p>\n<ul>\n<li>when the adviser has limited authority to transfer client assets pursuant to a standing letter of instruction or other similar asset transfer authorization\u00a0arrangement (\u201cSLOA\u201d) established by a client with a qualified custodian;<\/li>\n<li>when an agreement between the client and its custodian appears to provide the adviser with access to client assets\u2014even if the investment adviser is not\u00a0a party to such agreement; and<\/li>\n<li>when the adviser has the authority to move money between the client\u2019s own accounts (\u201cfirst-person transfers\u201d).<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.debevoise.com\/~\/media\/files\/insights\/publications\/2017\/02\/20170224_the_custody_rule_clarified_again.pdf\">Read More Here<\/a>.<\/p>\n<p>Additional contributor to this post:<\/p>\n<p><a href=\"http:\/\/www.debevoise.com\/gregorytlarkin\">Gregory T. Larkin<\/a>, \u00a0gtlarkin@debevoise.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a recent Risk Alert, the staff of the Office of Compliance Examinations and Inspections (\u201cOCIE\u201d) of the Securities and \u00a0Exchange Commission (\u201cSEC\u201d) observed that one of the most frequent deficiencies identified in OCIE\u00a0examinations was the failure of investment advisers to recognize that they might be deemed to have custody of client assets for purposes &hellip; <a href=\"https:\/\/bdia.pli.edu\/index.php\/2017\/02\/27\/the-custody-rule-clarified-again\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">The Custody Rule Clarified (Again)<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,24,22],"tags":[],"class_list":["post-557","post","type-post","status-publish","format-standard","hentry","category-compliance","category-enforcement","category-standard-of-care"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.10 - aioseo.com -->\n\t<meta name=\"description\" content=\"In a recent Risk Alert, the staff of the Office of Compliance Examinations and Inspections (\u201cOCIE\u201d) of the Securities and Exchange Commission (\u201cSEC\u201d) observed that one of the most frequent deficiencies identified in OCIE examinations was the failure of investment advisers to recognize that they might be deemed to have custody of client assets for purposes\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Kenneth J. 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