Asset custody could get a little bit easier and less confusing now that the SEC has changed Rule 206(4)-2 – which oversees asset custody – under the Investment Advisers Act of 1940. Effective on Nov. 5, the agency withdrew previous no-action letters, which governed custody rules. Now the 8,048 SEC-registered advisers must comply with the new rules by April 1, 2004.

According to the SEC, the amended rule:

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