SEC proposes removing PCAOB registration and inspection requirements from adviser custody rule audits and examinations.

The U.S. Securities and Exchange Commission (SEC) has proposed eliminating the requirement for accountants performing audits and examinations under the adviser custody rule to be registered with and subject to regular inspection by the Public Company Accounting Oversight Board (PCAOB). The SEC believes the indirect benefits of this requirement may not justify the incremental costs, potentially expanding the pool of eligible accountants and lowering compliance costs for advisers.