SEC proposes expansion of RIA custody rule
By 
Aaron Nicodemus2023-02-15T22:24:00
The Securities and Exchange Commission (SEC) proposed registered investment advisers (RIA) be required to place nearly any asset, not just cash and securities, with qualified custodians, thereby expanding the scope of client assets.
The proposed changes to the SEC’s custody rule would require hedge funds, pension funds, or other RIAs to place any type of asset under their control with a qualified custodian. This would include federal and state banks, credit unions, broker-dealers, and trusts. While the proposed rule does not specifically single out cryptocurrencies as assets subject to additional oversight, it’s clear from comments crypto products are in the agency’s crosshairs.
Along with the expansion of the custody rule, the proposal would:
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