Washington Administrative Code
Title 460 - Financial Institutions, Department of (Securities Division)
Chapter 460-24A - Investment advisers
Section 460-24A-106 - Additional custody requirements for an investment adviser that directly deducts fees from client accounts
Current through Register Vol. 24-06, March 15, 2024
(1) If you are an investment adviser registered or required to be registered under RCW 21.20.040 who has custody as defined in WAC 460-24A-005(6) because you have the authority to directly deduct fees from client accounts, you must comply with the requirements in WAC 460-24A-105 and the following additional safeguards:
(2) Waiver of net worth and bonding requirements. If you have custody as defined in WAC 460-24A-005(6) solely because you have the authority to have fees directly deducted from client accounts and you comply with the requirements set forth in this section, you are not required to comply with the net worth and bonding requirements for an investment adviser that has custody set forth in WAC 460-24A-170.
(3) Waiver of audited balance sheet requirement. If you have custody as defined in WAC 460-24A-005(6) solely because you have the authority to directly deduct fees from client accounts, you are not required to comply with the requirement to file an audited balance sheet as set forth in WAC 460-24A-060(1) if you comply with WAC 460-24A-060(3), requirements in WAC 460-24A-105, and subsection (1) of this section.
Statutory Authority: RCW 21.20.450, 21.20.900, 21.20.100, 21.20.050 - [21.20].060. 08-18-033, § 460-24A-106, filed 8/27/08, effective 9/27/08.