Oct. 30, 2023
Dear Securities and Exchange Commission, I am writing to provide my public comment on the proposed rule "Safeguarding Advisory Client Assets." As a concerned individual, I believe it is crucial to address the potential overreach of regulatory authority in this proposal. While the SEC assumes the role of enhancing investor protections, there is a risk that the proposed rule may exceed its jurisdiction, encroaching on areas that should be regulated by other agencies. Specifically, I would like to focus on the issue of privacy. As an investor, I have serious concerns regarding the privacy and safety of my sensitive financial data and social security number. The proposed rule includes requirements for investment advisers to provide custodial account details, custodian information, and client notifications. While transparency and oversight are important, the extensive sharing of personal information raises red flags. With the increasing prevalence of data breaches and identity theft, it is imperative that the SEC thoroughly considers the potential risks associated with widespread disclosure of sensitive client information. Furthermore, it is unclear how the SEC plans to effectively oversee and ensure the security of this vast amount of data once it is in the custody of third parties. The potential for misuse or unauthorized access to this information is a grave concern that must be addressed before implementing such a rule. To provide adequate protection for investor privacy, I strongly urge the SEC to revise the proposed rule to include robust safeguards and strict protocols to mitigate the risk of data breaches and unauthorized access to client information. This may include requiring investment advisers to adhere to stringent data protection regulations, conducting regular audits of custodial entities to ensure compliance, and implementing penalties for negligence in safeguarding client data. Additionally, as the SEC considers the economic impact of this proposed rule, it is crucial to evaluate the potential costs associated with enhanced privacy measures. Investment advisers are likely to incur significant expenses in implementing stringent data protection protocols. These costs may ultimately be passed on to investors, creating an additional financial burden for individuals who are already grappling with market uncertainties and economic challenges. In light of these concerns, I strongly urge the SEC to reconsider the breadth of its regulatory authority and ensure that it aligns with its intended goals of investor protection. Privacy is a fundamental right that should not be infringed upon without careful consideration of the potential risks involved. The SEC must strike a balance between promoting transparency and protecting investor privacy. In conclusion, I respectfully request the SEC to address the issue of privacy within the proposed rule "Safeguarding Advisory Client Assets." By adopting robust privacy safeguards and evaluating the potential economic impact on investors, the SEC can demonstrate its commitment to both protecting investors and respecting their privacy rights. Thank you for considering my comments. I trust that you will give due consideration to the concerns raised and take appropriate action to safeguard investor privacy. Sincerely,