Oct. 23, 2023
Anna Tyranowska [REDACTED] Public Comment I am writing in response to the proposed rule "Safeguarding Advisory Client Assets" by the Securities and Exchange Commission (SEC). While I understand the aim of enhancing investor protections, I have concerns regarding the potential overreach of regulatory authority and the impacts on privacy and safety. Firstly, I am concerned that the SEC's proposed rule may exceed its regulatory authority, encroaching on areas that should be regulated by other agencies. As a matter of principle, it is important to maintain a balance between regulatory oversight and the role of other regulatory bodies. By expanding the coverage to include a broader range of investments and making revisions to the custody rule, the SEC might unintentionally assume a role that goes beyond its intended mandate. It is crucial that the SEC carefully considers the appropriate boundaries of its authority to avoid potential overregulation. Furthermore, the proposed rule raises concerns regarding privacy and safety. The requirement for investment advisers to notify clients in writing when opening an account with a custodian, including the disclosure of sensitive information such as account numbers, could pose a risk to the privacy and security of individuals' financial data. With an increasing number of cyber threats and data breaches, it is important to carefully evaluate the potential risks of divulging such information to multiple custodians, as well as the mechanisms in place to protect clients' data from unauthorized access. Moreover, the rule's emphasis on enhanced recordkeeping, separation of duties, and regular reviews brings into question the privacy and safety of clients' information. While these measures are intended to safeguard client assets, there is a risk that the increased disclosure and sharing of sensitive information may create opportunities for data breaches or misuse. It is crucial that the SEC carefully considers the potential privacy implications and implements robust safeguards to prevent unauthorized access or misuse of clients' personal and financial information. In conclusion, while I appreciate the SEC's efforts to enhance investor protections through the proposed rule, I would like to express my concerns regarding the potential overreach of regulatory authority and the impacts on privacy and safety. It is essential that the SEC considers the appropriate boundaries of its regulatory authority and thoroughly assesses the potential risks to privacy and security posed by increased disclosures and sharing of sensitive information. By striking the right balance between regulatory oversight and individual privacy, the SEC can ensure effective investor protections while maintaining the privacy and safety of client assets. Thank you for considering my comment on the proposed rule. If there are any other areas of concern or if you have any specific questions regarding the proposal, please do not hesitate to reach out. I appreciate the opportunity to provide input on these important matters. Sincerely, Anna Tyranowska