SEC OK latest boost for alts clearing service

The Securities and Exchange Commission has given the nod to a Depository Trust and Clearing Corp. service that should ease custody of alternative assets. Last week, the SEC disclosed that a proposed rule change by DTCC's subsidiary, National Securities Clearing Corp., to define its Alternative Investment Product service as a "good control location" under customer protection rules, was made effective on March 7. The change enables industry participants that use the AIP service to report alternatives on customer statements. The rule filing mimics a no-action letter that the SEC gave to the Charles Schwab Corp. in February. (See earlier story.) The SEC also asked for comment on the rule change last week. "We anticipate adoption of the service to accelerate” as a result of the SEC's approval, said Ann Bergin, managing director of DTCC Wealth Management Services in a statement today.