Registered Investment Advisors

In today's increased regulatory environment, registered investment advisors and fund managers must comply with either federal or state level registration requirements, including the Investment Advisors Act of 1940 enacted by the Securities and Exchange Commission.  Spicer Jeffries has and continues to provide services to both federal and state registered advisors with asset levels ranging from lesser capitalized emerging funds to those with several billion dollars.

The SEC recently amended Rule 206(4)-2 under the Investment Advisors Act of 1940 regarding the various aspects of custody.  These amendments are a direct result of highly publicized losses by investors which now require additional controls to be placed into service for advisors that have access to client funds and securities.These amendments are a direct result of highly publicized losses by investors which now require additional controls to be placed into service for advisors that have access to client funds and securities.

 

The newly amended custody rules will now require an advisor that has custody:

 

  • To undergo an annual surprise examination to verify client assets by a PCAOB inspected firm on an annual basis, unless exempted
  • To have a reasonable belief that any qualified custodian maintaining client assets sends account statements directly to the advisory client
  • If the advisor or a related entity that is not "operationally independent" of the advisor acts as a "qualified custodian," it must have an internal control report prepared by a PCAOB inspected firm

 

Advisor Services

In connection with our work with registered investment advisors and fund managers, we offer the following services:

  • Financial statement audits, as required by regulations, including computation of minimum net capital requirements when applicable
  • Annual surprise verification procedures to verify client assets as required with the Investment Advisors Act of 1940
  • Internal control audits regarding an advisor’s custody of client funds and securities
  • Examinations and reviews of historical performance records in accordance with Global Investment Performance Standards (GIPS)
  • Preparation of tax returns for the advisor as well as individual income tax returns