9 ways advisers may have custody without knowing it
![Standing letters of authorization under which a client instructs its qualified custodian to transfer assets to a designated third party.
The SEC's <a href="https://www.sec.gov/divisions/investment/noaction/2017/investment-adviser-association-022117-206-4.htm"target="_blank"> February 2017 no-action letter</a> clarified that SLOAs, while qualifying as custody status, do not require surprise exams if seven conditions are followed, six of which must be completed by the RIA's custodian.](https://s32566.pcdn.co/wp-content/uploads/2019/10/FREE_100509999_PH_8_YAGXHKFNWEVH.jpg.optimal.jpg)
Standing letters of authorization under which a client instructs its qualified custodian to transfer assets to a designated third party.
The SEC's February 2017 no-action letter clarified that SLOAs, while qualifying as custody status, do not require surprise exams if seven conditions are followed, six of which must be completed by the RIA's custodian.