Oct. 28, 2023
Patryk Pawlus 28.10.2023. I am writing to express my concerns regarding the proposed rule "Safeguarding Advisory Client Assets" by the Securities and Exchange Commission (SEC). While I acknowledge the importance of enhancing investor protections and addressing gaps in the custody rule, I believe that there are areas where the SEC's proposed rule may exceed its regulatory authority and encroach on areas that should be regulated by other agencies. Additionally, I have concerns about the privacy and safety implications associated with the proposed rule. One area of concern is the potential overreach of the SEC's regulatory authority. While the SEC has a critical role in protecting investors and promoting fair and efficient markets, it is important to ensure that regulatory responsibilities are appropriately assigned among different agencies. There is a risk that the proposed rule, as currently presented, may intrude into areas that are traditionally overseen by other regulatory bodies. It is essential that the rule's scope is carefully defined to avoid overlapping or conflicting regulation. Furthermore, I have concerns regarding the privacy and safety implications inherent in the proposed rule. The rule would require investment advisers to share sensitive financial data and social security numbers with custodians and other third-party entities. While I understand the need for transparency and accountability in the safeguarding of client assets, it is essential to weigh these requirements against the potential risks to individual privacy and the potential for data breaches. Striking the right balance between investor protection and personal privacy is paramount. Along with these concerns, it is crucial to recognize the burden that the proposed rule may place on investment advisers, particularly smaller entities. Compliance with the rule's requirements may result in additional costs and administrative burdens for these firms. It is important for the SEC to consider the potential impact on small businesses and explore reasonable alternatives that achieve investor protection goals without unduly burdening industry participants. In conclusion, I urge the SEC to carefully consider any potential overreach of regulatory authority and to reassess the privacy and safety implications associated with the proposed rule. Additionally, I encourage the SEC to conduct a thorough examination of the costs and burdens imposed on investment advisers, particularly smaller entities, to ensure that the rule's benefits outweigh its potential negative consequences. Thank you for considering my comments. I appreciate the opportunity to participate in the public comment process and voice my concerns. If there are any additional areas of concern or if you have any further questions regarding the proposed rule, please do not hesitate to let me know. Sincerely, Patryk Pawlus