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The SEC's Division of Investment Management has issued a no-action letter concerning Investment Advisers Act Rule 206(4)-2 ("Custody of Funds or Securities of Clients by Investment Advisers"). The "Custody Rule" indirectly requires that auditors who perform certain functions for SEC-regulated entities be subject to regular inspection by the Public Company Accounting Oversight Board ("PCAOB"). According to the SEC letter, however, the PCAOB has yet to adopt a permanent program for such inspections. Therefore, the SEC previously issued a no-action letter stating that the SEC would not take

The SEC Division of Investment Management stated that it would not recommend enforcement against an adviser under Advisers Act Section 206(4) (Prohibited Transactions by Investment Advisers) and Rule 206(4)-2 ("Custody Rule") if the adviser treats a state-created 529 plan trust that is a college savings plan for which the adviser is a Program Manager as a "pooled investment vehicle" for purposes of the Custody Rule. In light of the relief granted by the letter, advisers are not required to have a surprise audit on their activities relating to 529 plans. The relief, however, is subject to