California Proposes New IA Custody Rule

A new custody rule for investment advisers incorporating the SEC's custody rule adopted under the Investment Adviser Act of 1940, as well as NASAA's model custody rule, was proposed by the California Department of Corporations. Interested persons may submit comments about the rule electronically (regulations@corp.ca.gov), by fax (916-322-5875) or by regular mail to the Department of Corporations, Attn. Karen Fong, Office of Legislation and Policy, 1515 K Street, Suite 200, Sacramento, California 95814. Comments must be received by 5:00 p.m. on December 31, 2012.