What must an investment advisor provide to clients when they maintain custody of client assets?

When an investment advisor maintains custody of client assets, they are required to provide the name and address of the custodian and a notice to clients. This requirement is established to ensure transparency and accountability in the handling of client assets. By providing the name and address of the custodian, clients can independently verify the safety and management of their assets. The notice serves to inform clients about the details of the custodianship, further enhancing their understanding of where their assets are held and how they are managed.

This transparency is crucial in building trust between the advisor and clients, as it allows clients to feel more confident that their investment assets are being managed appropriately. It also aligns with regulatory expectations aimed at protecting clients in situations where advisors have custody of their assets, minimizing the risk of mismanagement or fraud.

In contrast, options that suggest providing documents like tax forms or risk assessment strategies are not directly related to the custody of assets, nor do they fulfill the specific requirements set forth by regulations regarding custodial relationships.