9 ways advisers may have custody without knowing it
![The SEC's custody rule, as set forth in Rule 206(4)-2 under the Investment Advisers Act of 1940, was most recently amended in 2009 in an effort to prevent another Bernie Madoff scandal.
Thus, if an adviser has check-writing authority in a client's account, the SEC wants to know.](https://s32566.pcdn.co/wp-content/uploads/2019/10/FREE_100509999_PH_3_NQOQKIUETALL.jpg.optimal.jpg)
The SEC's custody rule, as set forth in Rule 206(4)-2 under the Investment Advisers Act of 1940, was most recently amended in 2009 in an effort to prevent another Bernie Madoff scandal.
Thus, if an adviser has check-writing authority in a client's account, the SEC wants to know.