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ARTICLE · 10 APRIL 2019

SEC Staff Seeks Public Comment Regarding Custody Issues Associated With Non-DVP Arrangements And Digital Assets

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On March 12, 2019, the staff of the Division of Investment Management of the US Securities and Exchange Commission (the "Staff" and the "SEC," respectively) published a letter to the Investment Adviser Association.

United StatesTechnology
Stephanie Monaco
Stephanie Monaco
Adam Kanter
Adam Kanter
J. Paul Forrester
J. Paul Forrester
Matthew F. Kluchenek
Matthew F. Kluchenek
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David Beam
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Leslie Cruz
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 On March 12, 2019, the staff of the Division of Investment Management of the US Securities and Exchange Commission (the "Staff" and the "SEC," respectively) published a letter to the Investment Adviser Association requesting comment from all interested parties regarding custody issues associated with (i) investment adviser and custodial trading practices that are not processed or settled on a delivery-versus-payment ("Non-DVP") basis and (ii) digital assets.1 The Staff noted that investment advisers and other industry participants have continued to raise issues on these topics in relation to Rule 206(4)-2, the custody rule under the Investment Advisers Act of 1940 (the "Custody Rule" and "Advisers Act," respectively). In the letter, the Staff announced that it is open to receiving public input on both these issues through the launch of an information-gathering initiative.

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