Regulatory Compliance Association Reviews

Custody Rule

Sidley Austin

Date: November 13, 2018
General Session: 12:00 PM ET to 1:30 PM ET
Location: Webcast (Free)

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This course will address Rule 206(4)-2 under the U.S. Investment Advisers Act of 1940 – commonly referred to as the “Custody Rule” – with a particular focus on the challenges of compliance with the rule in the context of both traditional and alternative investments.  Investment Adviser custody is a key area of focus in the SEC’s National Exam Program, and compliance with the nuances of the rule and the related SEC guidance can be challenging.  The course will address these difficulties, including difficulties for registered investment advisers that are deemed to hold custody of digital assets, which is becoming increasingly common as this asset class becomes more mainstream. 

Learning Objectives:

  • Apply the basics of the “Custody Rule” under the Investment Advisers Act
  • Recognize when an investment adviser has “custody”
  • Determine which assets are subject to the Custody Rule
  • Apply the Custody Rule to investments in loans, real estate, private equity, and swaps
  • Explain the SEC staff’s recent guidance on the Custody Rule with respect to standing letters of authorization and when an investment adviser is engaged in “authorized trading”
  • List provisions to consider including in agreements related to Custody Rule compliance
  • Comply with Custody Rule record keeping requirements
  • Discuss additional challenges for Custody Rule compliance with respect to digital assets

Session Chairman:

Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association

Senior Fellow from Practice:

Laurin Kleiman, JD, Partner, Sidley Austin LLP

Guest Lecturers:

Nathan Howell, JD, Partner, Sidley Austin LLP

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