However, if you instruct a custodian or third party to transfer the money and you hold a check made by the client and payable to the advisor, the advisor will keep the client's money.
SEC-registered investment advisors who hold client funds or securities in custody are required to protect those funds under the SEC's custody rules. Custody Rules provide investors with additional protection against theft or embezzlement by investment advisors,
Managers of private equity funds and other private investment funds registered as investment advisers with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940 (the Advisers Act) are subject to regulation 206(4). -2 must be adhered to. custody rules.
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