Comments on: New Custody Rules for Investment Advisers http://www.compliancebuilding.com/2009/05/15/new-custody-rules-for-investment-advisers/ Doug Cornelius on compliance and business ethics for private equity real estate Mon, 13 Feb 2012 12:56:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bill Winterberg http://www.compliancebuilding.com/2009/05/15/new-custody-rules-for-investment-advisers/comment-page-1/#comment-872 Bill Winterberg Fri, 15 May 2009 18:33:26 +0000 http://www.compliancebuilding.com/?p=2889#comment-872 Doug, Thanks for pointing out the rules under consideration. I suspect these rules will become law soon after the comment period passes. What some Investment Advisers need to be aware of are the potential scenarios were advisers actually may be deemed to have custody of funds, even if they don't know it. This is most common when advisers ask clients for their login password information for held-away accounts. If the held-away accounts allow logged-in users to change the address of record and request a distribution of funds, then advisers who keep these login credentials on file may be deemed to have custody & possession of funds. Doug,

Thanks for pointing out the rules under consideration. I suspect these rules will become law soon after the comment period passes.

What some Investment Advisers need to be aware of are the potential scenarios were advisers actually may be deemed to have custody of funds, even if they don’t know it. This is most common when advisers ask clients for their login password information for held-away accounts.

If the held-away accounts allow logged-in users to change the address of record and request a distribution of funds, then advisers who keep these login credentials on file may be deemed to have custody & possession of funds.

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