Oct. 30, 2023
Dear Secretary, I want to share my thoughts and concerns regarding the proposed rule "Safeguarding Advisory Client Assets" by the Securities and Exchange Commission (SEC). As someone who is deeply invested in the securities industry, I have a few key concerns that I would like to bring to your attention. Fair Treatment for All: First and foremost, I am disappointed with the unequal treatment of different market participants in the SEC's proposed rules. It seems that the rules may create an unfair playing field and distort the market. By imposing strict safeguards on some investment advisers while exempting others, it could lead to an imbalance and affect healthy competition. It is important for the SEC to ensure that all market participants are subjected to consistent safeguards, promoting fairness and integrity in our financial system. Privacy and Security Worries: Another significant concern I have relates to privacy and security. The proposed rules involve sharing sensitive financial data and personal information, such as social security numbers, with various third parties. This raises valid concerns about privacy, data breaches, identity theft, and other potential risks. It is crucial for the SEC to prioritize the protection of personal data and implement strong safeguards to minimize the chances of unauthorized access and misuse of sensitive information. Investors need to have confidence in the safety and security of the financial system to fully participate in the market. Boundary of SEC's Jurisdiction: Upon reviewing the proposed rules, I noticed certain provisions that appear to extend beyond the SEC's authority, notably in relation to privacy. Requiring investment advisers to provide custodian information and custodial account numbers directly to clients raises questions about the limits of the SEC's jurisdiction. While investor protection is essential, it is crucial to strike a balance and ensure that the SEC's regulatory authority respects privacy rights. I would greatly appreciate clarification regarding the extent of the SEC's jurisdiction in privacy matters. In conclusion, I fervently urge the SEC to address these concerns and conduct a comprehensive review of the proposed rule. As the SEC strives to enhance investor protections and ensure the safeguarding of client assets in the advisory industry, it is imperative to consider the potential implications and unintended consequences of the proposed rules. I am grateful for the chance to contribute to the public comment process and sincerely hope that the SEC will carefully consider these concerns for the betterment of our financial system. Thank you for your attention to these matters. Yours sincerely, A concerned citizen Sent with Proton Mail secure email.