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
(“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