Custody

/Custody

RIA Settles SEC Charges for Violations of Advisers Act and Custody Rule

RIA Settles SEC Charges for Violations of Advisers Act and Custody Rule WHAT HAPPENED? On July 17th, 2017, the Securities and Exchange Commission (SEC) released its final charges against a registered investment adviser for violations of the Investment Advisers Act of 1940 (the “Advisers Act”) and Custody Rule. According [...]

SEC Charges Investment Adviser for Improperly Registering and Violating Multiple Rules

SEC Charges Investment Adviser for Improperly Registering and Violating Multiple Rules WHAT HAPPENED? On April 5th, 2018, the Securities and Exchange Commission (SEC) charged an investment adviser for improperly registering and violating several commission rules. According to the SEC, the sole owner of an investment firm falsely claimed more [...]

Bookkeeping Service Considered Custody, Leads to Enforcement

Bookkeeping Service Considered Custody, Leads to Enforcement WHAT HAPPENED? The Securities and Exchange Commission (SEC) recently settled an enforcement action against Financial Fiduciaries, alleging that the adviser had custody of client assets through a “dual employee” who served in various outside business activities. The dual employee worked as a [...]

PE Firm Charged for Improperly Allocating Overhead and Portfolio Expenses to Funds

PE Firm Charged for Improperly Allocating Overhead and Portfolio Expenses to Funds WHAT HAPPENED? On September 11, 2017, the SEC charged a registered investment adviser (“the RIA”) and its principal (collectively, “Respondents”) with improperly allocating fees and expenses to two private equity funds (collectively, “the Funds”) managed by Respondents.  [...]

Action Advisers Should Take Prior to January 30, 2018, to Comply with the Custody Rule

Action Advisers Should Take Prior to January 30, 2018, to Comply with the Custody Rule THE CUSTODY RULE As summarized in a previous Flash, the SEC published a ‘no-action’ letter in February 2017, stating that custody requirements can be triggered under certain circumstances when an adviser participates in first-party and [...]

SEC Releases ‘No-Action’ Letter Concerning the Custody Rule

SEC Releases ‘No-Action’ Letter Concerning the Custody Rule WHAT HAPPENED? On February 21, 2017, the SEC released a ‘no-action’ letter to address confusion surrounding the Investment Advisers Act Rule 206(4)-4 (the “Custody Rule”) and its requirements for first-party money movement and third-party money movement.  The letter is intended to [...]