In December 2009, the SEC approved the custody rule of the Investment Advisers Act of 1940, requiring that advisors deemed to have custody of client funds or securities must undergo an annual surprise examination. In addition to a surprise examination, you may be required to run an internal control report if the custody of client funds and securities are held by a “related person,” such as a trust department.
Whitley Penn is registered with and inspected by the PCAOB. The firm also adheres to the annual surprise custody examinations of registered investment advisors. We have significant experience counseling investment advisors on the application process of the custody rule. Our unique specialization in combination with a high level of efficiency, allows us to offer cost-effective solutions to RIAs.
If you have any questions regarding custody examinations, please contact our Risk Advisory team.
John Williamson
Risk Advisory Partner