Investment adviser custody describes the legal and operational responsibility an investment adviser assumes over a client’s assets, including digital assets. It involves possessing client funds or securities, or having the authority to obtain possession or control over them. Regulations govern investment adviser custody to ensure client assets are protected from misuse or loss. Proper custody practices are essential for maintaining investor confidence and complying with securities laws.
Context
Investment adviser custody of digital assets is a highly scrutinized area within financial regulation, often appearing in news related to securities and digital asset markets. Regulators are actively working to clarify how existing custody rules apply to novel digital asset structures and the specific technological considerations involved. The ongoing development of clear guidance for investment advisers is critical for expanding institutional participation in the digital asset space while upholding investor protection standards.
The SEC Staff's no-action relief provides a critical, compliant pathway for Registered Investment Advisers to custody client digital assets via state-chartered trusts.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
