Oct. 22, 2023
Dear Securities and Exchange Commission, I am writing to express my concerns regarding the proposed rule "Safeguarding Advisory Client Assets" and its potential overreach of regulatory authority. While I appreciate the SEC's commitment to enhancing investor protections, I believe there are certain aspects of the proposed rule that encroach on areas better regulated by other agencies. Specifically, my concern lies with the issue of privacy and the safety associated with allowing multiple third parties access to sensitive financial data and personal information, such as social security numbers. The proposed rule requires advisers to provide detailed client information, including custodian information and custodial account numbers, when opening an account with a custodian. While the aim may be to improve transparency and investor protection, the potential risk to client privacy cannot be overlooked. As an investor, I value the confidentiality and security of my financial information. The widespread disclosure of such sensitive data may expose clients to unnecessary risks, including identity theft and fraudulent activities. It is essential that any regulatory measures implemented strike a careful balance between investor protection and the preservation of individual privacy. I strongly urge the SEC to consider alternative approaches that prioritize the safeguarding of client assets while minimizing the exposure of personal information. The proposed rule should be revised to incorporate stricter privacy protections and limitations on the disclosure of sensitive client data. It is of utmost importance for the SEC to work alongside other relevant agencies to ensure a comprehensive approach to privacy and data security. In conclusion, I believe the proposed rule may extend beyond the SEC's regulatory authority and pose potential risks to client privacy. I request that the SEC reevaluates the rule in consideration of privacy concerns and explores alternative measures that strike a balance between investor protection and maintaining individual privacy rights. Thank you for providing the opportunity to comment on this important matter. Sincerely, Anonymous