WebJun 28, 2024 · The Investment Management Guidance Update (2024 Guidance Update) 2 portion of the February 2024 guidance addressed what the staff has termed “inadvertent custody,” that is, imputing custody to a registered investment adviser (RIA) where provisions in a custodial agreement between the RIA’s client and its custodian permit the custodian … WebReleased in February 2024 alongside the SLOA guidance, “Inadvertent Custody” essentially imputes custody to an RIA when a separate custodial agreement with a qualified custodian authorizes the RIA to provide instructions to disburse or transfer funds or securities for a purpose other than trading, even if this authorization directly ...
SEC Clarifies Application of the Custody Rule
WebApr 6, 2024 · Inadvertent custody is most likely to arise with respect to a separately managed account because the custodian of a separately managed account is typically hired by the client. 1 The Guidance provides a single suggestion as to how an adviser can avoid inadvertent custody. WebJun 15, 2024 · The Guidance Update indicated that investment advisers may inadvertently have custody (Inadvertent Custody) of client assets due to provisions in a separate custodial agreement entered into between its advisory client and a qualified custodian that allow the investment adviser to instruct the custodian to disburse, or transfer, client funds … fat chef keilor
IM Guidance Update - SEC
WebWe are adopting, as proposed, a requirement that advisers with custody of client funds and securities maintain them with qualified custodians.17The qualified custodian must hold the funds or securities in anaccount either under the client's name or under the adviser's name as agent or trustee for its clients.18 WebJul 20, 2024 · The Staff previously stated that an adviser may have inadvertent custody of client assets as a result of provisions in a custodial agreement that permit the adviser to … WebInadvertent Custody: The Staff's 2024 IM Guidance Update and 2024 FAQ Response In February 2024, the staff ("Staff") of the SEC's Division of Investment Management published an IM Guidance Update 6 addressing inadvertent custody. In this guidance, the Staff indicated that an Adviser could inadvertently have custody over Client Assets as a ... fresh fish for dinner