Last month, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to the custody rule under the Investment Advisers Act of 1940, which the SEC explained are designed to increase protections for investors who entrust their funds and securities to registered investment advisers. According to the proposed rule changes, all SEC registered investment advisers will be required to hire an accounting firm to perform an annual surprise audit. The SEC has stated that it believes the surprise accounting audits will impact approximately 9,600 of the approximately 11,000 SEC registered investment advisor firms. The surprise accounting audits would be far-reaching because they would apply to all investment advisory accounts of which the registered investment advisor has any form of custody, including the ability to deduct advisory fees.
As the registered investment adviser industry wrestles with the proposed SEC rule changes, numerous questions are being asked. What do the changes mean for registered investment advisers? What is the practical implication of the proposed SEC rule? What will the costs be to the registered investment adviser? What new procedures will a registered investment adviser need to implement? What is the definition of custody, and what does a surprise accounting audit mean?
During a June 18 webinar, our consulting team will be discussing the major changes proposed by the SEC and providing answers to the many questions being asked by registered investment advisers. During the webinar we’ll examine some of the following topics:
- SEC’s intent and basis for proposing the changes;
- Definition and examples of custody;
Fee deduction procedures;
- Proposed annual surprise audits for all firm’s with custody and the more stringent proposal requiring PCAOB accounting firm audits;
- Form ADV and client disclosure requirements; and
- Guidance on what an investment advisor can do during the proposed rule’s comment period.
The webinar sponsored by RIA Compliance Consultants will take place on Thursday, June 18, 2009 from 12:00 -1:00 pm Central Standard Time. During the webinar you will have the ability to direct questions to our staff. The fee for the webinar is $59.95 and space is limited so sign up today!
Purchase now your webinar seat for $59.95: https://www2.gotomeeting.com/register/466750603
Posted by Bryan Hill
Labels: Custody, SAS 70 Audit Report