Jessica Forbes quoted in <em>Hedge Fund Law Report</em> on the SEC's amended custody rule

Jessica Forbes quoted in Hedge Fund Law Report on the SEC's amended custody rule

In "How Does the Amended Custody Rule Change the Balance of Power Between Hedge Fund Managers and Accountants?," New York corporate partner Jessica Forbes comments on the Securities Exchange Commission's new amended custody rule which is slated to become effective on March 12, 2010. The rule, which seeks to strengthen controls over the custody of client assets by registered investment advisers, will require surprise audits of trustee accounts by an independent public accountant to verify that the assets exist. Commenting on the cost and impact of surprise examinations to the custodian and hedge fund investors Ms. Forbes said, "In terms of disruption that will be greater at the custodial institutions than at the investment adviser."