Oct. 29, 2023
Dear Securities and Exchange Commission, I am writing to provide my feedback on the proposed rule "Safeguarding Advisory Client Assets." As a retail investor, I understand the importance of personal responsibility and risk management when it comes to investing. While I appreciate the SEC's efforts to enhance investor protection, I would like to share my concerns regarding certain aspects of the proposed rule and offer suggestions for its improvement. I. Scope of Rule Under the proposed rule, the coverage is expanded to include a broader range of investments held in a client's account. As a retail investor, I believe it is essential to define and clearly communicate the scope of investments covered by the rule. This will help investors understand which assets fall under the purview of the rule and guide their investment decisions accordingly. II. Enhancing Protections While I support the goal of enhancing protections and safeguarding client assets, I believe it is crucial to strike the right balance between regulations and investor freedom. Investors should have the flexibility to choose from a diversity of investment options based on their risk appetite and investment goals. Excessive regulations may limit the availability of certain investment opportunities and hinder the growth potential of investors' portfolios. III. Impact on Small Advisers I am concerned about the potential burden that the proposed rule may impose on small investment advisers. As a retail investor, I believe it is vital to have a wide selection of advisers to choose from. It is important to consider the potential impact on small advisers when implementing new regulations and ensure that the rule is proportionate to the size and resources of the adviser. IV. Education and Transparency While regulations play a crucial role in investor protection, I believe that education and transparency are equally important for retail investors. Alongside the proposed rule, I urge the SEC to enhance efforts to educate investors about the risks and benefits associated with investments. Additionally, greater transparency in the disclosure of investment-related information will empower retail investors to make informed decisions. In conclusion, as a retail investor, I value personal responsibility and sound risk management. While I acknowledge the importance of investor protection, I believe it is crucial to carefully consider the impact of the proposed rule on investor freedom and the growth potential of portfolios. Striking the right balance between regulations and personal responsibility will promote a vibrant and accessible investment landscape for retail investors. Thank you for considering my perspective. If you have any additional areas of concern or if you would like me to provide feedback on any other aspects of the proposed rule, please feel free to let me know. Sincerely, David