Mar. 22, 2023
March 22, 2023
I have some concerns about the Supplemental Standards of Ethical Conduct for Employees of the SEC rule, specifically regarding the use of an automated third-party collection system.
Given data breaches within third party entities having access to financial and personal information, I would not like an outside third party to have access to my personal and financial information. The informational area that I found in the proposal is cited here:
V. Economic Analysis, Subsection C. Proposed Amendments Concerning Automated Reporting of Purchases, Sales, Acquisitions, and Dispositions of Securities and Related Adjustment of Transaction Reporting Deadlines.
The Commission is proposing to amend Rule 102(f) to authorize OEC to collect covered securities transactions and holdings data directly from financial institutions through a third-party automated electronic system to satisfy the requirements to report securities holdings and transaction information and to modify the existing five-business-days reporting requirement to require all members and employees to report transactions that are not exempt under Rule 102(g)(1) in the manner and according to the schedule required by the DAEO.
In Addition, I hold an IRA at a credit union and I do not direct them to make investments on my behalf, specifically into Financial Industry Sector Funds. I believe the below section of the rule would apply to this IRA investment? If so, again I do not wish a third party to access this investment information due to concerns about a data breach.
A. Prohibited Ownership of Financial Industry Sector Funds:
The Commission is proposing to amend 4401.102(c)(1) to explicitly prohibit employee ownership of certain Financial Industry Sector Funds by expanding the scope of entities directly regulated by the Commission to include registered investment companies, common investment trusts of a bank, companies exempt in part or in total from registration under the Investment Company Act of 1940, or other pooled investment vehicles that have a stated policy of concentrating their investments in entities directly regulated by the Commission.
Investments in mutual funds (including exchange-traded funds), however, are permissible, provided employees comply with OGEs regulatory exemptions pursuant to 18 U.S.C. 208(b)(2) found in 5 CFR 2640.201(b), which restrict participation in matters affecting one or more holdings of a sector fund.
With these two citations, I think it is beneficial for me to submit a comment letter to the commission regarding the rule.