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SEC publishes important guidance on the Custody Rule, participating affiliate arrangements, robo-advisers, Form PF and certain compliance topics

Joyce E. Larson (Sidley Austin LLP in New York, NY, USA)
Kara J. Brown (Sidley Austin LLP in New York, NY, USA)
Ivet A. Bell (Sidley Austin LLP in New York, NY, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 4 September 2017

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Abstract

Purpose

To highlight guidance issued by the US Securities and Exchange Commission (SEC) for the benefit of investment advisers regarding certain obligations under the Investment Advisers Act of 1940 (Advisers Act) and the rules thereunder.

Design/methodology/approach

Summarizes recent guidance regarding issues related to several challenging Advisers Act requirements, including inadvertent custody and client account transfers under Advisers Act Rule 206(4)-2, the use of participating affiliate arrangements pursuant to the “Unibanco” no-action letters, unique considerations affecting automated advisers (i.e., “robo-advisers”), the top five most frequently identified compliance topics identified in examinations conducted by the SEC’s Office of Compliance Inspections and Examinations (OCIE), and recent guidance regarding the private fund regulatory filing Form PF.

Findings

This guidance may assist advisers in preparing for regulatory examinations and questions from institutional investors. While the recent guidance addresses important topics, the guidance also raises some practical questions.

Originality/value

Practical guidance from experienced securities and financial services lawyers.

Keywords

Citation

Larson, J.E., Brown, K.J. and Bell, I.A. (2017), "SEC publishes important guidance on the Custody Rule, participating affiliate arrangements, robo-advisers, Form PF and certain compliance topics", Journal of Investment Compliance, Vol. 18 No. 3, pp. 34-40. https://doi.org/10.1108/JOIC-06-2017-0036

Publisher

:

Emerald Publishing Limited

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