On 15 February 2023, the Securities and Exchange Commission (SEC) announced a proposed overhaul of the custody framework for SEC-registered investment advisers. The proposed rule changes aim to strengthen the regulatory framework and enhance investor protection by updating the existing rules under the Investment Advisers Act of 1940.
The Securities and Exchange Commission is proposing a new rule, Rule 206(4)-11, under the Investment Advisers Act of 1940, which would require investment advisers to have written policies and procedures regarding their custody of client assets. The proposed rule would also require annual surprise audits of investment advisers that have custody of client assets.
In its recent Request for Comment on Certain Information Providers Acting as Investment Advisers (the Request for Comment), the SEC sought input on whether additional regulation was needed to address the risks associated with information providers acting as investment advisers. The SEC received input from a variety of stakeholders, including investment advisers, investors, and industry groups.
The U.S. Securities and Exchange Commission adopted new rules meant to reduce risk in clearance and settlement for most broker-dealer transactions. The new rules require broker-dealers to maintain higher levels of capital, establish risk management controls, and conduct periodic stress tests.
Download PDF Download PDF file. Covering legal developments and regulatory news for funds, their advisers, and industry participants for the...
On February 15, 2023, the SEC proposed to amend and redesignate Rule 206(4)-2 (“Custody Rule”) under the Investment Advisers Act of 1940. The proposed amendments would enhance the protection of client assets held by investment advisers, and provide greater transparency and accountability.
The US Securities and Exchange Commission recently proposed a new rule and rule amendments that, if adopted as proposed, would require registered investment advisers to provide additional disclosures about their use of derivatives and other complex investment strategies. The proposed rule would also require investment advisers to establish risk management programs and provide additional disclosures to clients about the risks associated with such strategies.
On Dec. 22, 2020, the Securities and Exchange Commission (“SEC”) announced its decision to overhaul and modernize the SEC's “Advertising Rule” under the Investment Advisers Act of 1940. The new rule is designed to provide greater clarity and consistency in advertising by investment advisers, while also providing additional protections for investors.
On February 15, 2023, the Securities and Exchange Commission (SEC) proposed new rules and amendments (Proposal) to Rule 206(4)-2 (Custody Rule) under the Investment Advisers Act of 1940. The Proposal would require investment advisers that maintain custody of client assets to undergo annual surprise audits, and would provide additional protections for client assets held by investment advisers.
