Oct. 23, 2023
Hello, I am writing to express my concerns regarding the proposed rule "Safeguarding Advisory Client Assets" put forth by the Securities and Exchange Commission (SEC). While I appreciate the intention of enhancing investor protections and addressing gaps in the custody rule, I believe that certain aspects of the rule may exceed the SEC's regulatory authority. One area of concern is the potential encroachment on the responsibilities of other regulatory agencies. The SEC's proposed rule seems to expand its jurisdiction beyond its intended scope, stepping into areas that should be regulated by other entities. This overreach may create confusion and contradict the principle of regulatory specialization within the financial industry. Furthermore, I am deeply concerned about the privacy implications of the proposed rule. The rule requires investment advisers to disclose sensitive financial data and social security numbers to multiple third parties. While I understand the need for transparency and accountability, the extent of information sharing raises significant privacy and safety concerns. The increased exposure to cyber threats and data breaches is alarming, posing a risk not only to investors but also to the overall stability of the financial ecosystem. In light of these concerns, I urge the SEC to carefully consider the potential unintended consequences of the proposed rule. It is crucial to strike a delicate balance between investor protection and individual privacy rights. I therefore recommend that the SEC collaborate with other regulatory agencies to ensure synergy and avoid duplication of efforts. Additionally, I have a few general questions regarding the proposed rule. Firstly, how does the SEC plan to address the heightened privacy risks associated with the disclosure of sensitive financial data? Secondly, in what ways will the SEC work with other regulatory bodies to prevent the overreach of its regulatory authority? Lastly, what specific measures will be in place to protect investors from potential cyber threats resulting from the increased sharing of personal information? I appreciate the opportunity to provide feedback on this important matter and seek clarity on the issues raised. Thank you for considering my comments and addressing the concerns of investors like myself. Yours sincerely, Jacek Pachut [REDACTED]