New surprise examination requirement for RIAs are in effect. Many Registered Investment Advisors will be affected by this and need to take action to comply.
As of March 12, 2010, new amendments in regards to the Investment Advisers Act of 1940 Custody Rule are in effect. The changes will have a significant impact on custody practices of many private investment funds and their managers.
The amended Custody Rule (with limited exemptions) requires advisers with custody of client assets to undergo a surprise examination of those client assets by an independent public accountant. No exemptions are provided for advisers who have custody through trustee or executor relationships.
Many RIA firms may now fall into the category of advisers that must undergo an annual surprise examination. HLB Gross Collins, P.C. is equipped with the knowledge and expertise to help you meet these requirements as your independent public accounting firm. We are a fully licensed PCAOB firm providing surprise examination and SAS 70 services to RIAs.
Any investment adviser required to obtain a surprise examination from an independent public accountant must do so by December 31, 2010, and each year moving forward.