Last week I wrote about the proposed changes published by the SEC to require surprise audits of investment advisers who debit fees directly from clients’ accounts, falling under the requirements of custody. The proposed changes were estimated to cost each adviser office on average of $8,100 a year in compliance costs.
This proposal, just barely three weeks old, seems likely to be rescinded according to this Financial Planning article published by Donna Mitchell. In it she writes:
Unofficial reports from the SEC, however, now suggest that the regulator is dropping the third-party compliance audit requirement for advisors, according to the Financial Planning Association’s Web site.
