Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 28 MAY 2009

SEC Proposes Changes To Investment Advisers Act Custody Rule

Bracewell LLP
Bracewell LLP
Contributor
Bracewell LLP

Bracewell LLP

Paris is a vital energy hub in Europe, and our Paris office plays a central role in helping address...

View firm profile
Explore more from Bracewell LLP

On May 20, 2009, the Securities and Exchange Commission (the "SEC") published its proposed changes (the "Proposed Amendments") to Rule 206(4)-2 (the "Custody Rule") promulgated under the Investment Advisers Act of 1940, as amended (the "Advisers Act").

United StatesFinance and Banking
John Brunjes
John Brunjes
Robert Frenchman
Robert Frenchman
Jonathan Gill
Jonathan Gill
Julian Rainero
Julian Rainero
Robb Tretter
Robb Tretter

On May 20, 2009, the Securities and Exchange Commission (the "SEC") published its proposed changes (the "Proposed Amendments") to Rule 206(4)-2 (the "Custody Rule") promulgated under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Proposed Amendments are designed to provide additional safeguards when a registered investment adviser ("RIA") has custody of client funds and/or securities by imposing annual surprise examinations, reporting requirements and additional disclosure obligations regarding RIA custodial practices. If approved by the SEC, the Proposed Amendments would significantly impact the custody practices of many private investment funds and their managers. The SEC has requested comment on the Proposed Amendments, which must be received on or before July 28, 2009.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

SEC Advances “Responsible Retailization” Through A Potential Accredited Investor Exam And Potential Regulated Fund Reforms

On September 30, 2026, the Securities and Exchange Commission (SEC) issued two rule proposals and five notices aimed at expanding investors’ access to private markets. The package would add ways to qualify as an accredited investor, including passing a new exam administered by the Financial Industry Regulatory Authority (FINRA), broaden performance-based compensation and modernize regulated funds, including interval funds and business development companies (BDCs).
United StatesFinance and Banking
Proskauer Rose LLP
Proskauer Rose LLP
Article

OCC Issues Examiner Framework For Banks’ Use Of Artificial Intelligence

The Office of the Comptroller of the Currency has released a new framework for evaluating banks' deployment of artificial intelligence and agentic AI systems in their business operations. This guidance establishes how examiners will assess AI through existing risk management disciplines rather than creating separate regulatory requirements, with review intensity scaled to each use case's potential consequences and level of human oversight.
United StatesFinance and Banking
Sheppard
Sheppard
Article

SEC Proposes Rule Amendments To Expand Retail Access To Private Markets

The SEC has proposed sweeping amendments to expand retail investor access to private market strategies, including changes to performance-based compensation rules for registered investment advisers and modernization of the interval fund framework. The proposals also explore new credential-based pathways for individuals to qualify as accredited investors, potentially opening private offerings to a broader pool of eligible participants.
United StatesFinance and Banking
Duane Morris LLP
Duane Morris LLP
Article

SEC Approves FINRA’s New “Outside Activities” Rule

The Securities and Exchange Commission has approved FINRA Rule 3290, which will replace existing rules governing outside business activities and private securities transactions for registered persons. This new rule narrows the scope to focus on investment-related activities while maintaining similar supervisory obligations for member firms. Understanding the key changes and implementation requirements will be critical for broker-dealers as they update their compliance policies and procedures.
United StatesFinance and Banking
WilmerHale
WilmerHale
Article

Governor Abbott Orders TCEQ To Pause All Permit Issuance For Data Center Projects

Governor Abbott has ordered Texas environmental regulators to halt all data center permit issuance until grid operators complete a comprehensive audit in mid-December 2026. The sweeping directive affects not only grid-connected facilities but also fully islanded data centers relying on behind-the-meter generation, creating uncertainty for developers and their contractual obligations.
United StatesEnvironment
Bracewell LLP
Bracewell LLP
Article

Trump Administration Issues Executive Order Regarding Bulk Power System Equipment; DOE Requests Further Information

President Trump's Executive Order 14421 establishes a comprehensive framework for screening foreign-produced equipment in the U.S. bulk-power system, potentially affecting transformers, inverters, battery storage, and control systems tied to certain foreign entities. The Department of Energy has 120 days to issue implementing regulations and is seeking stakeholder input through a Request for Information to balance grid security concerns with reliability, supply chain constraints, and economic impacts across
GlobalEnergy and Natural Resources
Bracewell LLP
Bracewell LLP
Article

Venture Global Update: Galp Prevails In Latest LNG Commissioning Dispute

An ICC tribunal has ruled in favor of Galp in its dispute with Venture Global over the Calcasieu Pass LNG facility, finding that Venture Global breached its obligation to declare the facility operational in a timely manner. This decision adds to a series of contrasting outcomes in similar disputes involving other buyers, with damages yet to be determined in a hearing scheduled for 2027 or 2028.
United StatesLitigation, Mediation & Arbitration
Bracewell LLP
Bracewell LLP
Podcast

Inside HKIAC: 2025 Arbitration Trends And What Comes Next (Podcast)

The Hong Kong International Arbitration Centre processed 582 new cases worth $16.2 billion in 2025, involving parties from 61 jurisdictions. HKIAC Secretary-General Joanne Lau discusses emerging trends in international arbitration, including cryptocurrency disputes, arbitrator diversity initiatives, and the strategic advantages of Hong Kong's interim measures arrangement with Mainland China.
Hong KongLitigation, Mediation & Arbitration
Bracewell LLP
Bracewell LLP
Article

DOJ Fraud Division Orders Broader, Faster Enforcement

The Department of Justice's National Fraud Enforcement Division has issued a sweeping directive mandating prosecutors to attack fraud from all angles using tax, securities fraud, consumer fraud, and cybercrime authorities. This comprehensive approach includes aggressive asset seizure strategies, enhanced cooperation mechanisms, and expanded enforcement tools aimed at dismantling fraud schemes and maximizing recoveries across government contracting, healthcare, and financial sectors.
United StatesCriminal Law
Bracewell LLP
Bracewell LLP
Article

Treasury Expands Operation Economic Outcast Toolbox With Focus On Foreign Financial Institutions

Treasury's Operation Economic Outcast is expanding beyond traditional sanctions to target foreign banks, digital-asset platforms, and shadow-banking networks that facilitate Iran's access to the global financial system. Through a combination of OFAC designations, FinCEN prohibitions, and actions against intermediary infrastructure, the administration is demonstrating its willingness to employ multiple punitive measures to achieve economic isolation. Financial institutions must now assess Iran-risk not just
United StatesGovernment, Public Sector
Bracewell LLP
Bracewell LLP
Article

The SEC’s Mixed Message: Cracking Down On Auditors While Easing Up On Disclosure

The SEC has launched a specialized enforcement unit targeting accounting professionals while simultaneously proposing to reduce mandatory interim reporting frequency. This creates a complex regulatory environment where heightened scrutiny of auditors coincides with fewer opportunities for interim financial review, raising critical questions about disclosure timing, audit committee oversight, and enforcement risk.
United StatesCorporate/Commercial Law
Bracewell LLP
Bracewell LLP
Article

KKR Agrees To Historic $250 Million Penalty For Alleged Violations Of HSR...

The Department of Justice announced a landmark $250 million settlement with KKR & Co. for allegedly submitting deficient Hart-Scott-Rodino Act notification forms across at least 16 transactions. This unprecedented penalty, the largest ever for HSR violations, raises critical questions about merger notification compliance obligations and the consequences of systemic noncompliance with federal antitrust review requirements.
United StatesAntitrust/Competition Law
Bracewell LLP
Bracewell LLP
Article

Operation Economic Outcast: Two Key Updates Two Weeks In

The Trump administration's Operation Economic Outcast represents an unprecedented escalation in Iran sanctions enforcement, threatening secondary sanctions against entire countries while expanding sectoral restrictions and targeting financial institutions globally. Two weeks into implementation, the campaign reveals a complex geopolitical landscape where major powers like China and Russia openly defy US demands, while European allies navigate conflicting legal obligations between supporting American
GlobalInternational Law
Bracewell LLP
Bracewell LLP