Investment advisers frequently have custody, either directly or indirectly, of their clients assets. Obviously, custody of another’s assets can lead to infidelity. In the word’s of the satirist Juvenal, the question necessarily becomes “sed quis custodiet ipsos custodes? (but who shall guard the guards?).
In the case of registered investment advisers, securities regulators are the guards. Unfortunately, these guards have not always been effective.
In 2000, the North American Securities Administrators Association (NASAA) adopted a model custody rule. NASAA amended the rule in 2004 and 2005. The current version of NASAA’s model rule can be read here.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.
Published In:
Administrative Law Updates, Finance & Banking Updates, Securities Law Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising
