Custody of Funds or Securities of Clients by Investment Advisers

The SEC released the final version of its new custody rule (.pdf). The Commissioners had announced their approval of the rule on December 17 and then released the final text on December 30. The rule goes into effect 60 days after publication in the Federal Register. The amendments are designed to provide additional safeguards under … Read more »

Perception, Dilbert and a Magical Management Necklace

Are your assumptions correct? You get a new tool to help manage your processes and everything starts working better. Is everything actually working better? Or is the data just being manipulated to look better? As is often the case, the pointy-haired boss can show us the problem. Often the compliance officer is like the pointy-haired … Read more »

In-House Counsel Sanctioned for Failing to Monitor the Preservation of Electronic Evidence

In the Swofford v. Eslinger case, the court sanctioned in-house counsel (but not outside counsel) for failure to preserve evidence. The attorney sanctioned was general counsel for a government entity, the Seminal County Sheriff’s Department. What was unique about this case was that the sanctions were brought against in-house counsel for spoliation of evidence even … Read more »