The SEC’s Proposed Custody Rule Changes An Analysis of the Impact on Hedge Fund Managers


By: Terrance J. O’Malley, Jessica Forbes

The SEC recently voted to propose changes to the Advisers Act custody rule following a series of recent enforcement actions involving alleged misappropriation or other misuse of client assets.  While the proposed changes would impact all registered advisers with custody of client assets, the changes would also have unique application to hedge fund managers.  This client alert examines the proposed changes to the custody rule from the perspective of a hedge fund manager.

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