124 STAT. 1577 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(ii) has assets under management between— ‘‘(I) the amount specified under subparagraph (A) of paragraph (1), as such amount may have been adjusted by the Commission pursuant to that subparagraph; and ‘‘(II) $100,000,000, or such higher amount as the Commission may, by rule, deem appropriate in accordance with the purposes of this title.’’. SEC. 411. CUSTODY OF CLIENT ASSETS. The Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended by adding at the end the following new section: ‘‘SEC. 223. CUSTODY OF CLIENT ACCOUNTS. ‘‘An investment adviser registered under this title shall take such steps to safeguard client assets over which such adviser has custody, including, without limitation, verification of such assets by an independent public accountant, as the Commission may, by rule, prescribe.’’. SEC. 412. COMPTROLLER GENERAL STUDY ON CUSTODY RULE COSTS. The Comptroller General of the United States shall— (1) conduct a study of— (A) the compliance costs associated with the current Securities and Exchange Commission rules 204–2 (17 C.F .R. Parts 275.204–2) and rule 206(4)–2 (17 C.F .R. 275.206(4)–2) under the Investment Advisers Act of 1940 regarding custody of funds or securities of clients by invest- ment advisers; and (B) the additional costs if subsection (b)(6) of rule 206(4)–2 (17 C.F .R. 275.206(4)–2(b)(6)) relating to oper- ational independence were eliminated; and (2) submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Finan- cial Services of the House of Representatives on the results of such study, not later than 3 years after the date of enactment of this Act. SEC. 413. ADJUSTING THE ACCREDITED INVESTOR STANDARD. (a) IN GENERAL.—The Commission shall adjust any net worth standard for an accredited investor, as set forth in the rules of the Commission under the Securities Act of 1933, so that the individual net worth of any natural person, or joint net worth with the spouse of that person, at the time of purchase, is more than $1,000,000 (as such amount is adjusted periodically by rule of the Commission), excluding the value of the primary residence of such natural person, except that during the 4-year period that begins on the date of enactment of this Act, any net worth standard shall be $1,000,000, excluding the value of the primary residence of such natural person. (b) REVIEW AND ADJUSTMENT.— (1) INITIAL REVIEW AND ADJUSTMENT.— (A) INITIAL REVIEW.—The Commission may undertake a review of the definition of the term ‘‘accredited investor’’, as such term applies to natural persons, to determine whether the requirements of the definition, excluding the requirement relating to the net worth standard described in subsection (a), should be adjusted or modified for the 15 USC 77b note. Reports. Deadline. 15 USC 80b–18b.
