On October 28, 2013, the SEC sanctioned three registered investment advisers for, among other things, violating Rule 206(4)-2 under the Advisers Act (the “Custody Rule”). These settled actions, the subject of a special SEC press release, follow a National Exam Program risk alert last spring that raised concerns about advisers’ lack of compliance with the Custody Rule.

These cases serve as yet another reminder of the SEC staff’s focus on the Custody Rule. They also underscore some other themes apparent in recent SEC enforcement actions, which we discuss below.