# kaal:claim:2337268-032

**Claim.** The Dodd-Frank Act tightened custodial practice by requiring safeguards for client assets and verification by independent accountants, a response to concerns over theft and client exposure to Ponzi schemes.

**Type.** design  **Support.** argued

**Holds when.**

- investment advisers with custody of client assets after 2010

**Source quote.**

> In 2010, in an effort to address concerns over theft and to lower clients' exposure to the risks of Ponzi schemes, the Dodd-Frank Act amended the IAA, heightening custodial practices by requiring safeguards for client assets and the use of independent accountants to verify assets.96

**From.** Wulf A. Kaal, *Investment Adviser Regulation* (2013), 7. Custody of Client Assets, page 19

**Cite as.** Wulf A. Kaal, Investment Adviser Regulation (2013). SSRN: https://ssrn.com/abstract=2337268

**Verify.** sha256 of source PDF `7075ce35282a8ee75b81ae3dec0e19f68631beae7f3c3a00ab2827538dc9e302` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202013%20-%20Investment%20Adviser%20Regulation.pdf

**Topics.** defi

**Keywords.** custody, ponzi-schemes, independent-verification, dodd-frank, client-assets

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