SEC OKs New Safeguards For Investment Advisers

Law360, New York (January 11, 2010, 6:45 PM EST) -- The U.S. Securities and Exchange Commission has adopted new safeguards against fraud perpetrated by investment advisers and broker-dealers, including yearly "surprise exams" by independent accountants to verify investors' assets.

On Monday, the SEC published in the Federal Register the final amendments to the Investment Advisers Act of 1940 that will go into effect on March 12.

In addition to the surprise tests, the new SEC rules will require custodians of client assets and securities to provide their clients with account statements directly.

Moreover, the new safeguards...
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