Schulte Roth & Zabel co-managing partner Marc Elovitz quoted in Bloomberg Law

Schulte Roth & Zabel co-managing partner Marc Elovitz spoke with Bloomberg Law reporter Matthew Bultman for his article, “Wall Street Braces for More SEC Scrutiny of AI, Private Funds.” The piece examined the Securities and Exchange Commission’s race to safeguard its most consequential rules from any future changes in Congress or the administration.   

As part of that work, the SEC has proposed overhauling its “Custody Rule,” which requires investment advisers who store clients’ assets to segregate and safely hold them with “qualified custodians,” such as banks. The agency’s proposal would expand the rule’s requirements to cover a range of assets, including crypto. It would also impose new requirements, including added record-keeping duties. 

Marc commented on the potential wide-ranging impacts of the safeguarding rule, including forcing money managers to reevaluate many of their custodial agreements, he stated, “It ‘will throw a lot of the current custody and deal flow and trade processing into disarray if it is adopted as it was proposed.’” 

Read the article here.