Oct. 30, 2023
Dear SEC, I am writing to provide my comment on the proposed rule "Safeguarding Advisory Client Assets." While I appreciate the need for investor protection and the SEC's efforts to address gaps in the custody rule, I am concerned about potential overreach of regulatory authority in certain aspects of the proposed rule. Privacy is a paramount concern for investors, and the widespread sharing of sensitive financial data and personal information with third parties raises significant privacy and safety issues. Allowing numerous parties to have access to my financial data and Social Security number increases the risk of identity theft and exposes investors to potential harm. The proposed rule should consider more robust privacy safeguards and limit the dissemination of this sensitive information to ensure the protection of investors' privacy rights. Furthermore, the scope of the proposed rule may exceed the SEC's regulatory authority. It is important to distinguish the responsibilities that fall within the jurisdiction of the SEC from those that should be regulated by other agencies. Overstepping the boundaries of regulatory authority can create confusion and overlap, leading to inefficiencies and increased compliance costs for investment advisers. The SEC should carefully assess whether certain aspects of the proposed rule are within its purview and, if not, engage with relevant agencies to ensure a coordinated and effective regulatory framework. In conclusion, while I support the SEC's intention to enhance investor protections and address gaps in the custody rule, it is crucial to balance these objectives with considerations of privacy and potential overreach of regulatory authority. The SEC should prioritize the development of robust privacy safeguards and collaborate with other agencies to establish a comprehensive regulatory framework that protects investor rights while avoiding unnecessary compliance burdens on investment advisers. Thank you for the opportunity to provide my input on this important matter. Sincerely, Dominik Wloch