Upcoming ComplianceCast Focuses on Recent SEC Custody Guidance

Ascendant’s ComplianceCast series returns on Friday, March 24 with a hot topic: recent SEC guidance on custody.

Last month, the Division of Investment Management issued a Guidance Update related to inadvertent custody of client funds or securities. The SEC also issued a long-awaited no-action letter that offered deeper clarity on the rule. ComplianceCast goes in depth on the topic, discussing all of the following:

The Impact on Thousands of Advisory Firms
Ways an Adviser May Inadvertently Have Custody
Practical Implications
Next Steps
More Surprise Examinations: Client Communications and Agreements

This ComplianceCast will address the complex topic, tackling practical implications of what circumstances now will constitute custody. New coverage of the following:

  • SLOAs (authority to transfer client money to a third party)
  • First Person Transfers (authority to transfer money to the same client)
  • Custodial Agreement Provisions with Advisory Clients (which impute advisers with custody)
  • Avoid Inadvertent Custody with Written Consent

Analyzing Recent SEC Guidance:

  • Investment Adviser Association No-Action Letter, February 21, 2017
  • IM Guidance Update February 2017, “Inadvertent Custody: Advisory Contract versus Custodial Contract Authority.”
  • FAQs, prior no-action letters

Next steps: Good-faith effort and timing; adapting policies and procedures, written consent and IMAs.
Bonus coverage of more industry questions.

The panelists for the webinar will be: Christopher Gilkerson, SVP & General Counsel, Charles Schwab & Co.; Laura L. Grossman, Assistant General Counsel, Investment Adviser Association; Robert E. Plaze, Partner, Stroock & Stroock & Lavan LLP; and Jacqueline Hallihan, Partner, Ascendant Compliance Management

To register for this ComplianceCast, click here and fill out the registration form.

Related Content

Latest Content

Do your Fund Documents Clearly Disclose Receipt of Accelerated Monitoring Fees?

Somewhat more reminiscent of the broken-windows enforcement era, two affiliated private equity advisers managing billions settled with the SEC on charges that they failed to make pre-commitment disclosures in fund governing documents related to accelerated fees received from portfolio companies. Interestingly, according to the Settlement Order, the advisers had made some disclosures in fund documents … Continued

With New Risk Alert, SEC Doubles Down on Best Execution

On July 11, 2018, the SEC issued a Risk Alert outlining commonly found compliance issues related to best execution by investment advisers. Advisers have an obligation to seek best execution of client transactions, taking into consideration quantitative factors such as execution quality and commission rate, as well as more qualitative factors such as the value … Continued

The Cost of Compliance: Understanding and Leveraging Resources

For compliance officers, obtaining the necessary tools and resources to build an effective compliance program can be costly and difficult to implement. How do you distinguish the best in class, the most cost-efficient and effective for use in your program? In this ComplianceCast, speakers David Porteous of Faegre Baker Daniels and Korrine Kohm of Ascendant … Continued

California Privacy Law Brings GDPR-Lite to the U.S.

New Act Will Give Consumers Rights to Access and Delete Their Data In what has become an ongoing race among states to have the toughest privacy regulation in the U.S., California has jumped to the front. On June 28, 2018, California’s legislature unanimously passed a privacy bill that was later signed by Governor Jerry Brown, … Continued

SEC Deficiency Letters Require Swift Action

On the topic of SEC Deficiency Letters, if you have received one, you must promptly take corrective action. The SEC will not tolerate inappropriate delay. The SEC recently imposed an $8 million civil penalty on an adviser who, among other things, failed to promptly take corrective action in its Form ADV filing, following receipt of … Continued

Mailing List

Subscribe to the Ascendant Compliance email list for the latest compliance resources, conferences, ComplianceCasts™, and more.

Loading form...

Contact Us

Ascendant works together with clients to identify and assess critical needs through customized plans. If you need assistance with compliance functions, regulatory services, cybersecurity or technology tools, we’d love to speak with you.