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O’Melveny’s Easter Quoted in Private Equity Manager on SEC’s Custody Rule Risk AlertMarch 18, 2013 O’Melveny & Myers LLP counsel Kris Easter is quoted in the March 13, 2013, Private Equity Manager article “SEC Sounds the Alarm on Custody Rule.” According to the article, a risk alert recently issued by the Securities and Exchange Commission (SEC) has drawn attention to the issue that some registered private equity firms are apparently unaware of their duty to comply with its custody rule.
“Essentially the way the SEC interprets custody is in the ability to obtain access to the assets,” Easter told the publication. “The GP of a fund has that ability because it controls the fund and generally the money and securities are held in an account for a fund and not in individual limited partner accounts.”
Easter is a member of O’Melveny’s Financial Services Practice and resides in the Firm’s Washington, DC office.