Oct. 19, 2023
17 CFR Parts 275 and 279 Release No. IA-6240; File No. S7-04-23 RIN 3235-AM32 Safeguarding Advisory Client Assets I am writing to comment on the proposed rule change regarding custody of client assets. I am a state-registered advisor and solo practitioner. I have discretion over all my client assets but do not hold custody under the current definition. My clients all have their own individual accounts at Vanguard and I have “limited agent” access – which allows me to buy and sell securities. I cannot add or delete bank accounts, direct money to an account I control, change beneficiaries, or charge the account fees directly. These tasks can only be done by the client directly. As a sole practitioner and small business owner, I set up this arrangement with Vanguard as it is better for my clients (better reporting, transparency, less risk to them if I go out of business and safety of their assets). From my perspective, it also limits the significant regulatory burdens and financial costs that go with being a custodian of clients’ money. Under your proposal, I would now be considered to have custody. This is something that would be financially unaffordable for a small advisor like myself and would provide no benefit to my clients. The burden may be so large that I may have to either shut down entirely – or simply choose to no longer register and be covered under the deminimus rule. I don’t see how this benefits anyone and I hope you will reconsider this rule proposal and provide a custody exemption for advisors like myself. Eric Greenberg Eric Greenberg CEO & Registered Investment Advisor EricGreenberg@ESGWA.com 267-613-8406 www.ESGWA.com