October 2, 2026 – Global Investment Law Watch

United States: Hold On! SEC Proposes Updates to Custody Rules

Oct 02 2026

By: Thoreau A. Bartmann, Lance C. Dial, Jon-Luc Dupuy, and Pablo J. Man

The United States Securities and Exchange Commission (SEC) has long been concerned with investment advisers having access to client assets and investment companies’ safeguarding of fund assets. The custodial framework for investment companies dates back to 1941, and Rule 206(4)-2 (the Custody Rule) for investment advisers was adopted in 1962. Despite amendments and SEC staff guidance over the years, critics argue these rules have not been sufficiently flexible to evolve with modern markets, particularly digital assets.

United States: Open (Hand)book for SEC Exams: A Useful Tool for the Uninitiated

Oct 02 2026

By: Pablo J. Man, Neil T. Smith, and Hayley Trahan-Liptak

A call from the Staff at the Division of Examinations (Exams) of the Securities and Exchange Commission (SEC or the Commission) notifying a registrant of an exam has long induced uncertainty and concern, even though exams generally follow a standard playbook. Stating a goal of increased transparency and productivity, the SEC released The SEC Exam Handbook: A Practical Guide on Process and Engagement (the Handbook), which outlines a roadmap for examinations and the Commission’s expectations for registrants. For registrants who have been examined before, there will be no surprises.

Archive:October 2, 2026