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Navigating the Custody Rule: A guide for investment advisers

Author

Listed:
  • Nelson, William

    (Assistant General Counsel, Certified Financial Planner Board of Standards, USA)

  • Ecker, Bradley

    (Student, Sturm College of Law at University of Denver, USA)

Abstract

This paper focuses on prominent issues surrounding the Custody Rule (Rule 206(4)-2) of the Investment Advisers Act of 1940. The Custody Rule has recently raised several issues for Securities and Exchange Commission (SEC)- registered investment advisers as they try to navigate through new markets and new industry practices. As such, this paper addresses the SEC’s recent guidance regarding custody with respect to standing letters of authorisation, asset transfers between client accounts, inadvertent custody, access to client log-in information, trustee relationships, the COVID-19 pandemic and non-delivery versus payment (DVP) transfer arrangements.

Suggested Citation

  • Nelson, William & Ecker, Bradley, 2021. "Navigating the Custody Rule: A guide for investment advisers," Journal of Securities Operations & Custody, Henry Stewart Publications, vol. 13(3), pages 243-252, June.
    • Handle: RePEc:aza:jsoc00:y:2021:v:13:i:3:p:243-252
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    More about this item

    Keywords

    custodian; Custody Rule; investment advisers; SEC; compliance; guidance;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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