The SEC Division of Investment Management (the "Division") extended no-action relief regarding compliance by certain investment advisers with the  Investment Advisers Act Rule 206(4)-2 (the "Custody Rule"). The no-action relief relates to the performance of audits when an investment adviser is deemed to have custody by virtue of keeping assets with a broker-dealer that is a related person.

Absent adoption by the Public Company Accounting Oversight Board ("PCAOB") of a permanent program for the inspection of broker-dealer auditors, the position taken in the previous no-action letter would have expired on December 31, 2016. The extended no-action relief now expires the earlier of: (i) December 31, 2019; or (ii) when the SEC approves a PCAOB-adopted permanent program.

The Division explained that it is extending this no-action relief "[i]n light of the PCAOB's on-going Temporary Rule and its continued work on presenting a rule proposal for a permanent inspection program." The Division noted that the PCAOB has indicated that it anticipates presenting a corresponding rule proposal for a permanent inspection program in 2016.

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