05.09.23
Advisor, Industry Groups Blast SEC Custody Proposal
by: Mark Schoeff Jr.
Organizations representing investment advisors and financial firms warned the U.S. Securities and Exchange Commission (SEC) that a proposal to overhaul custody rules would impose significant costs and regulatory burdens on advisors and crimp their latitude to manage client accounts. The| proposal, which the SEC released in February, would extend custody obligations beyond securities and funds, which are covered by the current rule, and include all assets in a client’s portfolio. Under the proposal, an advisor who can make trades on behalf of a client would be deemed to have custody of the client’s assets. The proposal also would require advisors to enter a written agreement with a qualified custodian to protect customer assets. In comment letters that were due May 8, critics questioned the justification for the rule and accused the SEC of regulatory overreach.
Read the full article on InvestmentNews