AICPA, CAQ comment on SEC's proposed amendments to custody rule for investment advisers.

The AICPA and the Center for Audit Quality, which is affiliated with the AICPA, have formally commented on the Securities and Exchange Commission's proposed amendments to the custody rule under the Investment Advisers Act of 1940. Under the proposal, advisers with "custody" would be required to obtain a surprise examination by an "independent public accountant," as defined in the proposed rule. The SEC estimates that the surprise examination requirement would apply to 9,575 of 11,272 SEC-registered investment advisers. Additionally, advisers who do not utilize an independent qualified custodian must obtain an internal controls examination performed by an auditor subject to Public Company Accounting Oversight Board registration, inspection and enforcement. The SEC estimates that this requirement would apply to 372 advisers. (Also, the surprise examination for these 372 advisers must be performed by an auditor subject to PCAOB registration, inspection and enforcement).

Read the AICPA's response to the proposals as well as the CAO's comment letter. The AICPA's comment letter is in furtherance of the AICPA's regulatory recommendations to Congress that were discussed at its spring Council meeting. The AICPA will continue to monitor regulatory proposals with the potential to impact our diverse membership and is committed to ensuring that CPAs have a voice in the outcome. Share your...

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