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šØ SEC CUSTODY RULES JUST GOT INTERESTING š
The SEC has proposed changes to custody rules for investment advisers and regulated fundsābut the real story may be the conditions attached to self-custody.
Three details stand out:
1ļøā£ Self-custody could be permitted when an adviser determines that no qualified custodian is available. The key question: who decides whether a custodian is actually available?
2ļøā£ Strict safeguards would apply ā cybersecurity controls, safeguarding expertise, client disclosures and ongoing reviews. And if a qualified custodian becomes available, the self-custody route could effectively disappear.
3ļøā£ State-chartered trust companies could become eligible custodians, potentially expanding the number of institutions able to provide custody services.
š The big question now: Will the SEC clearly define the āno custodian availableā testāor leave it open to interpretation?
The details could matter more than the headline.
DYOR. Not financial advice.
#Regulation #SEC
$MANA
$MAGIC
šØ SEC CUSTODY RULES JUST GOT INTERESTING š
The SEC has proposed changes to custody rules for investment advisers and regulated fundsābut the real story may be the conditions attached to self-custody.
Three details stand out:
1ļøā£ Self-custody could be permitted when an adviser determines that no qualified custodian is available. The key question: who decides whether a custodian is actually available?
2ļøā£ Strict safeguards would apply ā cybersecurity controls, safeguarding expertise, client disclosures and ongoing reviews. And if a qualified custodian becomes available, the self-custody route could effectively disappear.
3ļøā£ State-chartered trust companies could become eligible custodians, potentially expanding the number of institutions able to provide custody services.
š The big question now: Will the SEC clearly define the āno custodian availableā testāor leave it open to interpretation?
The details could matter more than the headline.
DYOR. Not financial advice.
#Regulation #SEC
