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SEC Charges Investment Adviser with Custody Rule Violations

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October 29, 2014

Dear Friends,

Today, the SEC announced charges against an investment adviser for violating the Custody Rule, for consistently delivering audited financials late.

Pursuant to the Custody Rule, investment advisers with custody of private fund assets, must distribute audited financials to investors within 120 days of fiscal year end.  In this case, the firm delivered the audited financials up to eight months late. “The custody rule is not a technicality. It is a critical investor protection provision designed to ensure investor assets are safe,” said Andrew M. Calamari, Director of the SEC’s New York Regional office.

Please click here for the SEC’s order and click here for the SEC’s Investor Bulletin on the Custody Rule. Please feel free to contact us with any questions at (212) 867-0200 or email us at info@counselworksllc.com.

Thank you,


About CounselWorks LLC

CounselWorks is a strategic business and regulatory consulting firm, that provides project-based consulting and manages compliance and regulatory programs for hedge funds, private equity firms, investment companies, broker-dealers and investment banks.
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