Jacko Law Group, PC
Call Today for a Consultation
San Diego 619-298-2880 San Francisco 415-766-3599 Los Angeles 213-631-2549

JLG Legal Risk Management Tip – California’s Revised Custody Rule Seeks Uniformity

027455-glossy-black-icon-culture-state-californiaJacko Law Group, PC (“JLG”) each month publishes a Legal Tip, written by one of its professional staff on a relevant topic specific to the securities industry. In late May 2014, JLG’s Attorney, Robert Boeche, wrote and released a Legal Tip that highlights California’s recent adoption of revisions to the investment adviser custody rule (California Code of Regulations, Title 10, Section 260.237) (the “Rule”) by the California Department of Business Oversight (“DBO”), and how these revisions and additions to the custody Rule impact California investment advisers. The adoption of revisions and additions to the Rule – many of which defer to definitions and language found in the North American Securities Administrator’s Association’s (“NASAA’s”) Model Custody Rule – serves to “increase uniformity” between the rules for California investment advisers and SEC registered advisers on custody issues. The article focuses in on three major revisions and additions, including 1) notification requirements for advisers deemed to have custody to the Securities and Exchange Commission (“SEC”) and clients; 2) annual surprise examinations on adviser’s assets and books & records; and 3) new compliance issues for advisers to pooled investment vehicles to consider in order to be exempt from annual surprise examinations. “Custody related deficiencies are consistently one of the most targeted areas of state regulatory examinations,” and as such, Boeche recommends that a “solid understanding” of the new guidelines and areas that trigger the custody rule should be thoroughly studied by all California investment advisers. To read a PDF of the full article “California’s Revised Custody Rule Seeks Uniformity,” please click here. To browse our Legal Risk Management Tips library, including insightful articles on a wide range of industry topics, please click here. For further information on this and other related subjects, please contact us at [email protected]  or (619) 298-2880.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Email us to request more information or to schedule an appointment.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

San Diego Office
1350 Columbia Street
Suite 300
San Diego, CA 92101

Toll Free: 866-497-2298
Phone: 213-631-2549
Phone: 619-298-2880
Fax: 619-298-2882
Map & Directions

San Francisco Office
Four Embarcadero Center
Suite 1400
San Francisco, CA 94111

Phone: 213-631-2549
Phone: 415-766-3599
Fax: 619-298-2882
Map & Directions

Los Angeles Office
535 N. Brand Boulevard
Suite 270
Glendale, CA 91203

Phone: 213-631-2549
Fax: 619-298-2882
Map & Directions