Custody Rule Examinations
On December 30, 2009, the Securities and Exchange Commission adopted amendments to the custody and recordkeeping rules under the Investment Advisers Act of 1940. The amendments are designed to provide additional safeguards under the Advisers Act when a registered adviser has custody of client funds or securities and require such an adviser, among other things to:
- undergo an annual surprise examination by an independent public accountant to verify client assets and
- obtain or receive a report of the internal controls relating to the custody of those assets from an independent public accountant that is registered with the Public Company Accounting Oversight Board unless client assets are maintained by an independent custodian (i.e., a custodian that is not the adviser itself or a related person).
D. Brooks and Associates CPA’s, P.A. is registered with the Public Company Accounting Oversight Board and serves as an independent public accountant for the purpose of satisfying these new requirements.
Please see links to SEC guidance below:
Final Rule: Custody of Funds or Securities of Clients by Investment Advisers
Staff Responses to Questions About the Custody Rule