custody Archives - Page 2 of 2 - MasterCompliance

SEC Rule to Allow for the Use Electronic Signatures

Custody for Private Fund Advisers

Posted on February 11, 2019September 16, 2019 by SCM Communications

If you are a private fund adviser (i.e. hedge fund or pooled investment vehicle), do you know if you are deemed to have custody? If so, is your Form ADV Part I completed correctly? Custody for private fund advisers is regarded by the SEC as an extremely important topic and should be reviewed frequently by your firm.

Since there is a significant increase in compliance responsibilities for firms that have custody of client funds and/or securities, it’s critical that you consider whether or not your firm will be deemed to have custody.

What is Custody?

Posted on January 4, 2018January 4, 2018 by SCM Communications

Custody remains a focus area for SEC and state regulators alike. Firms should review the guidance released by the SEC to learn what steps can be taken to avoid having inadvertent custody requiring an independent surprise examination.

Guidance Issued by the SEC: Inadvertent Contractual Custody

In guidance notice No. 2017-01, “Inadvertent Custody: Advisory Contract Versus Custodial Contract Authority,” the SEC lists examples of problematic statements listed in agreements between clients and qualified custodians. The staff has determined an investment adviser may inadvertently have custody of client funds or securities because of provisions in a separate custodial Read More…