SEC Risk Alert and Investor Bulletin on Investment Adviser Custody Rule
On March 4, the SEC issued a Risk Alert on compliance with its custody rule for investment advisers and an Investor Bulletin on the rule which is designed to protect advisory clients from theft or misuse of their funds and securities. The alert comes after a review which identified significant deficiencies in about one-third of firms examined, including: (i) failure to recognize that they have custody; (ii) failure to meet surprise examination requirements; and (iii) failure to satisfy the rule's qualified custodian requirements. SEC Release.
FHFA Outlines 2013 Goals for Fannie and Freddie
On March 4, the FHFA released the 2013 Conservatorship Scorecard for Fannie Mae and Freddie Mac. The Scorecard details specific priorities for the GSEs in 2013 that build upon the strategic goals announced in 2012, including: (i) build a new securitization infrastructure; (ii) contract the GSEs' dominant presence in the marketplace; and (iii) maintain foreclosure prevention activities and credit availability. FHFA Release.