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U.S. Securities and Exchange Commission

Advisers with Custody: Instructions for Sending Independent Accountant Notification of Material Discrepancies Found During Annual Surprise Examination

Registered investment advisers that have custody of client funds or securities must take certain steps designed to protect client assets from loss or theft under Rule 206(4)-2, the custody rule under the Investment Advisers Act of 1940. An adviser with custody of client assets must, among other requirements, undergo an annual surprise examination by an independent public accountant to verify all client funds and securities of which the adviser has custody.

If the independent public accountant finds any material discrepancies during the course of its surprise examination, the accountant must notify the Commission within one business day of the finding, by means of a facsimile transmission or electronic mail, followed by first class mail (under Rule 206(4)-2(a)(4)(ii)). These notifications should be directed to the attention of the U.S. Securities and Exchange Commission's Director of the Office of Compliance Inspections and Examinations, by care of the Office's Adviser Accountant Notification Liaison. Additional information regarding sending such discrepancy notices is provided below.

  • First Class Mail: 100 F. Street, N.E., Mail Stop 7720, Attn: Adviser Accountant Notification Liaison, Washington D.C. 20549
  • Facsimile Transmission: (202) 772-9184
  • Email Transmission: IAAccountantNotificationLiaison@sec.gov

 

http://www.sec.gov/about/offices/ocie/awc-instructions.htm


Modified: 03/26/2014