SEC Custody Rule Could be an Opportunity for Private Fund Advisers (Grant Thornton)

October 2013

KEYWORDS: financial institutions, hedge funds, investment adviser, Private Equity, SEC, Securities and Exchange Commission


Jack Katz, Michael Patanella,

  • Grant Thornton

New guidance from the SEC staff should help investment advisers of private equity and hedge funds keep costs down by reducing custodial expense for client securities. Under an IM Guidance Update from the commission’s Division of Investment Management, advisers are allowed to safeguard certain certificated, privately offered securities themselves, rather than pay financial institutions to do so.

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