Regulatory and Legislative

SEC Proposes Rule Changes to Custody of Investment Advisor Client Assets

The Securities and Exchange Commission (SEC) has issued a proposed rule “Safeguarding Advisory Client Assets.” The SEC indicates in a press release that the proposed changes are intended to help ensure that qualified custodians provide certain standard custodial protections when maintaining an advisory client’s assets. These protections are designed, among other things, to ensure client assets are properly segregated and held in accounts to protect the assets in the event of a qualified custodian bankruptcy or other insolvency.

Comments must be made within 60 days of publication in the Federal Register.

Regulatory and Legislative

IRS Provides 2024 Electronic Filing Relief for Form 5330

IRS Provides 2024 Electronic Filing Relief for Form 5330

The IRS notes in a new post that electronic filing of Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, will not be required for the remainder of the 2024 taxable year—confirming that taxpayers may continue to file by paper.