Mar. 12, 2023
March 12, 2023 The proposed amendments aim to enhance investor protection and promote transparency in the investment advisory industry. By requiring advisers with custody of client assets to engage an independent public accountant to perform surprise examinations, the SEC hopes to improve the accuracy of custody controls and prevent potential fraud or misappropriation of assets. The expanded scope of custodial arrangements that trigger the surprise examination requirement and the updated notice requirements aim to ensure that clients are better informed about their advisers' custody practices. Overall, these changes will promote greater accountability and transparancy in an environment that certainly needs it.