SIFMA provides comments to the Government Accountability Office (GAO) on  GAO Study of Custody Rule Costs (250684).  The study is required by Section 412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, 124 Stat. 1376, 1577 (July 21, 2012) (Dodd-Frank), on the compliance costs that registered investment advisers incur to comply with Rule 206(4)-2 (the “Custody Rule”) under the Investment Advisers Act of 1940, as amended (the Advisers Act) and the costs that some advisers might incur if the surprise-examination exemptions under the Custody Rule were eliminated.  SIFMA is concerned that the application of certain provisions of the Custody Rule, under the amendments finalized on December 30, 2009,3 imposes significant costs on certain industry participants, particularly dual registrants and advisers that use related qualified custodians to maintain custody of clients’ assets, without adding commensurate protections for investors or clients.