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Distribute audited financial statements to investors in “funds-of-funds”

With respect to a “fund-of-funds”, the Custody Rule provides an exception from certain requirements of the Custody Rule with respect to the account of a limited partnership, limited liability company or another type of pooled investment vehicle (e.g., hedge funds and other private funds) that is subject to audit by an independent public accountant at least annually and distributes its audited financial statements prepared in accordance with U.S. generally accepted accounting principles to all investors within 180 days after the fund’s fiscal year-end.
Notwithstanding the timing of this requirement, registered CPOs are required to file and distribute audited financials within 90 days of the pool’s fiscal year-end, unless an extension has been granted.