SEC Grants No-Action Relief to Investment Adviser Regarding Custody Rule

The SEC provided no-action relief to 16th Amendment Advisors LLC ("the Company") regarding their independent verification and account statement, pursuant to the Advisers Act Section 206(4) and Rule 206(4)-2, also known as the "Custody Rule."

The SEC stated that it will not recommend enforcement action against the Company as a result of the Company's specific representations 1) that individuals have plenary access to information (either statutory, contractual or some combination of the two) concerning the management of the Company; 2) that the Funds and each of the Fund's general partners are listed as "control persons" in Schedule A to Form ADV because of their status as the Company officers or directors with executive responsibility; and 3) that they have a material ownership as principals in the Company.

The SEC also stated that it is granting no-action relief based on the representations made by the Company that each of the owners of the fund is an insider of the adviser or a family member of an insider.

See: SEC No-Action Letter.