Oct. 22, 2023
Robert Baron [REDACTED] Securities and Exchange Commission Division of Investment Management 100 F Street, NE Washington, DC 20549 RE: Public Comment on Safeguarding Advisory Client Assets Proposal (File Number S7-16-21) Dear Sir/Madam, I am writing in response to the Securities and Exchange Commission's (SEC) proposal on "Safeguarding Advisory Client Assets." As an investor and advocate for the protection of older adults, I have several concerns regarding the proposed rule and its potential impact on this vulnerable population. First and foremost, I appreciate the SEC's efforts to enhance investor protections and address gaps in the custody rule. However, I urge the SEC to consider the unique challenges faced by older adults when developing and implementing regulatory measures. Older adults often rely on their retirement savings and investments to secure their financial future and maintain their independence. Therefore, any rule that impacts retirement savings should be carefully crafted to ensure it does not inadvertently exacerbate issues such as senior poverty or elder abuse and neglect. One particular aspect of concern is the proposed amendments to the Surprise Examination Requirement. While surprise examinations are crucial in safeguarding client assets, it is important to consider the potential impact on older adults who may struggle with understanding and complying with complex regulatory requirements. Adequate support and education should be provided to help older investors navigate these changes, to avoid any unintended consequences that may harm their financial well-being. Additionally, the proposed rule addresses the scope of assets and expands the coverage to include a broader range of investments held in a client's account. This is a positive step towards protecting investor interests. However, I urge the SEC to carefully consider the impact of this expansion on older adults who may have different investment portfolios compared to younger investors. It is essential to ensure that the rule does not impose undue burden or complexity on older adults, potentially deterring them from seeking vital investment advice and services. Furthermore, I would like to see the SEC address the issue of cybersecurity and its implications for older adults within the proposed rule. As our society becomes increasingly reliant on digital platforms for financial transactions, it is crucial to safeguard the personal and financial information of older adults from theft and fraud. The proposed rule should include robust provisions to protect client data and ensure that investment advisers have the necessary safeguards in place to prevent unauthorized access to sensitive information. Lastly, I applaud the SEC's intention to provide a transition period and different compliance dates based on the assets under management. However, given the potential challenges faced by smaller investment advisers, particularly those catering to older clients, I urge the SEC to consider additional support and guidance to assist these firms in implementing the proposed rule. This could include targeted educational programs, resources, and extensions to compliance deadlines, which would help ensure a smoother transition and maintain continuity in service provision to older investors. In conclusion, I appreciate the SEC's efforts to enhance investor protections through the proposed rule on Safeguarding Advisory Client Assets. However, I urge the SEC to consider the unique needs and challenges faced by older adults when finalizing the rule. By incorporating the suggestions and concerns outlined above, the SEC can ensure a more inclusive and equitable regulatory environment that ultimately benefits investors of all ages. Thank you for considering my comments. I appreciate the opportunity to contribute to this important discussion. If you require any further information or have any questions, please do not hesitate to contact me. Sincerely, Robert Baron Sent with Proton Mail secure email.