SEC scrutinizes advisers with access to clients’ outside accounts

The Securities and Exchange Commission is taking a close look at advisers who have obtained from clients usernames and passwords for online accounts that aren’t under the adviser’s management. Advisers who don’t claim custody of the accounts must convince the SEC that they can’t take distributions from them, says Kevin Woodard, managing director of Graydon Compliance Solutions. “If you can’t prove you can’t steal from it, you should say you have custody,” he said. InvestmentNews (10/22)