If an accounting firm acts as the independent auditor of a pooled investment vehicle, may the accounting firm also act as the independent representative for the investors in the pool?
Likely not. The accounting firm would have to meet the definition of “independent representative” set out in the amended custody rule. As noted in the previous question, the concept of independence for purposes of the definition of “independent representative” under the amended custody rule is distinct from the concept of independence for purposes of the Commission’s auditor independence rules. In addition, if the audited financial statements are intended to be delivered to the independent representative rather than to the investors in the pooled vehicle, then the accounting firm would be receiving its own audit results; in those circumstances, we believe that the accountant may not be able to act solely in the limited partners’ interests.
Related Questions
- Should the accountants confirmation procedures for a surprise examination of a pooled investment vehicle include confirmation with investors of the pooled investment vehicle?
- Can someone who is an advisory client of an adviser act as an independent representative for other clients of that adviser?
- What is the name of Pervasives independent accounting firm?
