Sarbanes-Oxley Adds to Whistleblower Mosaic

On September 25, 2003, the Securities and Exchange Commission ("SEC") issued amendments to modernize the custody rule under the Investment Advisers Act of 1940. The SEC indicated that the amendments are intended to enhance protections for advisory clients' assets, harmonize the custody rule with current custodial practices, and clarify the circumstances under which advisers will be deemed to have cusotdy. The amendments will be effective November 5, 2003, and advisers must comply with the amended custody rule no later than April 1, 2004. After the compliance date, routine SEC examinations will likely involve reviewing an adviser's books and records for compliance with the new custody rule. A copy of the adopting release is available on the SEC's Web site at www.sec.gov/rules/final/ia-2176.htm.