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ARTICLE · 06 JANUARY 2010

SEC Issues Adopting Release For Advisers Act Custody Rule Amendments

Goodwin Procter LLP
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The SEC issued the adopting release for amendments to Rule 206(4)-2 (the "Rule") under the Investment Advisers Act of 1940 (the "Advisers Act") and related changes to Form ADV, Form ADV-E and the recordkeeping requirements for registered advisers.

United StatesFinance and Banking

Developments Of Note

  • SEC Issues Adopting Release For Advisers Act Custody Rule Amendments
  • FRB Issues NPR Under Which FRB Would Sell Term Deposits To Depository Institutions To Absorb Excess Liquidity In U.S. Banking System
  • Senators Dodd And Shelby Release Statement Agreeing On Certain Regulatory Reform Goals

DEVELOPMENTS OF NOTE

SEC Issues Adopting Release For Advisers Act Custody Rule Amendments

The SEC issued the adopting release for amendments to Rule 206(4)-2 (the "Rule") under the Investment Advisers Act of 1940 (the "Advisers Act") and related changes to Form ADV, Form ADV-E and the recordkeeping requirements for registered advisers. (Rule 206(4)-2 imposes a number of requirements on an SEC-registered investment adviser that is deemed to have custody of its clients' funds and securities.) This article summarizes the principal elements of the amendments – (a) client assets held by an adviser's related person as a basis for custody, (b) an

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