In December 2009, the Securities Exchange Commission (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 custody rule 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 Public Company Accounting Oversight Board (PCAOB). The firm also adheres to the annual surprise custody rule 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 Registered Investment Advisors (RIAs).

If you have any questions regarding custody rule examinations, please contact our Risk Advisory team below.