Securities Law & Corporate Counsel Blog

Recently, the California Department of Business Oversight (“DBO”) officially adopted revisions to the California investment adviser custody rule, Section 260.237 of Title 10 of the California Code of Regulations (the “Rule”).  According to the DBO, these changes were in response to, and incorporate provisions from, the recently adopted amendments to the Securities and Exchange Commission’s (“SEC’s”) Custody Rule[1] and the North American Securities Administrators Association’s (“NASAA’s”) Model Custody Rule.[2] Notably, changes to the federal custody rule in 2009 prompted changes to the Model Rule by NASAA, which in turn triggered the DBO to enact its recent revisions.  According to the DBO, the goal of the Rule’s enactment is to increase uniformity so that regardless of whether an investment adviser registers with the State of California or with the SEC, the adviser will have the same responsibilities with investors afforded the same protections.Please click below to read more: JLG Legal Risk Management Tip - California's Revised Custody Rule Seeks Uniformity - 05.2014