Industry groups across the independent advisory channel expressed approval over a proposed rule by the Securities and Exchange Commission that would exclude advisors whose only access to client funds is to deduct fees from surprise audits. The groups insist, however, that they are waiting to see the final rule – due out in several days at the earliest – before making any judgments.

Under the new rule, advisory firms which custody clients’ assets with an independent firm and only debit client’s accounts to withdraw management fees will not be subject to any surprise audits by third parties.

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