In May we reported that the SEC was requesting comments on the new Proposed Investment Adviser Custody Rules. The SEC’s comment period ended this past week with a flurry of activity before the submission deadline. As we reported previously, there has been a general industry backlash against the rule because it does not provide any substantive protection for investors and creates significant additional costs for investment advisory firms – including the requirement of a surprise audit for those adviser which directly debit advisory fees from the client’s brokerage account.
Mallon P.C. participated in this discussion by submitting the following Comment on Proposed Investment Adviser Custody Rule. Specifically we found that there would be no good reason to institute the rule as written and believe that it would harm small investment advisory firms disproportionately. Additionally, we urged the SEC to consider alternatives to the proposed rule which would have more effective investor protections with less impact on the business aspects of the investment advisers who would be subject to the rule.
- Investment Adviser Registration
- Investment Adviser Overview
- Series 65 Exam
- Hedge Fund
- Investment Adviser Books and Records Requirement
Bart Mallon, Esq. runs hedge fund law blog and has written most all of the articles which appear on this website. Mr. Mallon’s legal practice is devoted to helping emerging and start up hedge fund managers successfully launch a hedge fund. If you are a hedge fund manager who is looking to start a hedge fund, or if you have questions about investment adviser registration with the SEC or state securities commission, please call Mr. Mallon directly at 415-296-8510.