June 11, 2015
To Whom it May Concern:
In March 2014 the SEC sent an e-mail reminder to SEC-Registered Investment Advisors to answer all questions in Item 9 of Part 1A of Form ADV. I was advised at the time (through email correspondence with the SEC) that one of the reasons the SEC sent the reminder email was to help clarify the misunderstanding for Item 9.F as it relates to the IA's response to Item 9.A regarding custody; and that the SEC was considering rewording Item 9.F in a future change to Form ADV.
I am submitting this comment to respectfully suggest that the SEC take the opportunity provided by this current proposal for amendments to Form ADV to also reword the Item 9.F question or instructions such that it would be clear that investment advisers that solely deduct fees - and thus answer "no" to the custody question in Item 9.A.1 - are required to answer Item 9.F. It could be as simple as eliminating the first half of the question and only asking how many persons act as qualified custodians. It is very easy to skip a question that begins "If you or your related persons have custody..." having just replied that you do not have custody in Item 9.A.1. I appreciate the opportunity to submit my comments on this proposed rule change.
Best regards,
Pat Hyman