RSA 421-B:5-502-A Custody of Client Funds or Securities by Investment Advisers.

(a) Safekeeping required. It is unlawful and deemed to be a fraudulent or deceitful act, practice, or course of business for an investment adviser, registered or required to be registered, to have custody of client funds or securities unless:
(1) Notice to secretary of state. The investment adviser notifies the secretary of state promptly in writing that the investment adviser has or may have custody. Such notification is required to be given on Form ADV;
(2) Qualified custodian. A qualified custodian maintains those funds and securities:
(A) in a separate account for each client under that client's name; or
(B) in accounts that contain only the investment adviser's clients' funds and securities, under the investment adviser's name as agent or trustee for the