1 Aug 2025
🏦SEC Notice on Investment Advisers' Custodial Compliance Rules
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 206(4)-2
Summary
This regulatory notice from the Securities and Exchange Commission discusses the information collection requirements for investment advisers regarding the custody of client funds. It emphasizes the importance of transparency, regular audits, and client notifications to ensure proper handling of assets, reinforcing the adviser's obligations under the Investment Advisers Act of 1940.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulatory text outlines compliance requirements under Rule 206(4)-2, impacting investment advisers holding client funds. It mandates custodial transparency, including the need for independent audits and client notifications, which are significant for business operations and legal adherence.