---
title: "Record whether advisory-fee withdrawals are the only custody"
url: "https://ailawframework.com/practice/financial-services-regulation/record-the-ongoing-fee-reference-day-and-whether-written-consent-is-on-t/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A28-MA20261022-1-US"
practice_area: "Financial Services Regulation (AFSL/ASIC/credit)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Record whether advisory-fee withdrawals are the only custody

> From the advisory contract and the custodian arrangement, record whether the adviser is authorized or permitted to withdraw client funds or securities on its instruction to the custodian, and whether the file describes…

Canonical page: https://ailawframework.com/practice/financial-services-regulation/record-the-ongoing-fee-reference-day-and-whether-written-consent-is-on-t/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Financial Services Regulation (AFSL/ASIC/credit)](https://ailawframework.com/practice/financial-services-regulation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the advisory contract and the custodian arrangement, record whether the adviser is authorized or permitted to withdraw client funds or securities on its instruction to the custodian, and whether the file describes that authority as limited to payment of the advisory fee. Record whether the qualified custodian is described as a related person. Do not decide that an independent verification is excused, and do not treat a missing consent form as a breach. |
| What the lawyer must review | The lawyer decides whether the adviser has custody and whether the fee-deduction exception applies. Under 17 CFR 275.206(4)-2, custody includes any arrangement, including a general power of attorney, under which the adviser is authorized or permitted to withdraw client funds or securities maintained with a custodian upon the adviser's instruction. Paragraph (b)(3) says the adviser is not required to obtain the independent verification in paragraph (a)(4) if the adviser has custody solely as a consequence of authority to make withdrawals from client accounts to pay the advisory fee, and, if the qualified custodian is a related person, the adviser can rely on paragraph (b)(6). The opened text does not require a written client consent, and it does not set a 60-day or 12-month consent window. The same custody definition and fee-deduction exception appear on the eCFR page. |
| Written for | United States |
| Applies to | [Record the ongoing-fee reference day and whether written consent is on the file](https://ailawframework.com/practice/financial-services-regulation/record-the-ongoing-fee-reference-day-and-whether-written-consent-is-on-t.md) |

## Checking plan

- What the AI does: From the advisory contract and the custodian arrangement, record whether the adviser is authorized or permitted to withdraw client funds or securities on its instruction to the custodian, and whether the file describes that authority as limited to payment of the advisory fee. Record whether the qualified custodian is described as a related person. Do not decide that an independent verification is excused, and do not treat a missing consent form as a breach.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- This is the custody rule's fee-withdrawal exception. It is not a periodic written-consent regime.
- If the qualified custodian is a related person, paragraph (b)(6) is a further condition. The lawyer reads that paragraph before relying on the exception.

## Sources

- [17 CFR 275.206(4)-2, custody of funds or securities](https://www.law.cornell.edu/cfr/text/17/275.206(4)-2) (checked 2026-10-22)
- [17 CFR 275.206(4)-2, custody of funds or securities (eCFR)](https://www.ecfr.gov/current/title-17/section-275.206(4)-2) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*