In another Custody Rule case, the SEC charged private fund manager, Driftwood Advisers, LLC, with violations of Rule 206(4)-2 under the Investment Advisers Act for failing to timely distribute audited financial statements to private fund investors for two fiscal years. The adviser agreed to pay a civil penalty of $115,000 to settle the case. This case follows other Custody Rule enforcement sweeps and standalone cases against fund managers for failure to comply with the audit provisions under the rule. Accordingly, it is imperative that private fund managers ensure that fund audits are promptly completed and distributed within the required timelines, or appropriate action is taken to avoid violations of the Custody Rule.