In an article published on July 12, 2017 by InvestmentNews, Ed Klees and Jim Van Horn provide insight on how the SEC’s custody rule can burden both the client and the adviser. The rule is immensely important, aiming to block unscrupulous advisers from stealing assets through indirect means, but when applied to “inadvertent custody” it can have a negative impact on advisers and their clients alike. While the SEC is widely appreciated for its effort to protect client assets, it should consider adding substantive protections to guard against theft or loss of assets that do not require the adviser and the client to renegotiate the client's deal with its custodian. For the full article, you may click here.
Kristen M. Chatterton