26 Trade Associations Send Letter to SEC Chair Gensler on Negative Impacts of the Safeguarding Proposal on Investors, Market Participants, and the Financial Markets

Washington, DC, September 12, 2023 – SIFMA and SIFMA Asset Management Group (SIFMA AMG) today joined with a diverse set of trade associations –  26 in total – in sending a letter to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler urging the SEC not to adopt the Safeguarding Advisory Client proposed rule in its current form.

“We support the Commission’s goal of ensuring high levels of investor protection, including the safety of client assets from potential misuse or loss. However, in its current form, the proposal is in conflict with that goal as it will result in a myriad of negative impacts on investors including their access to various assets and markets with well-established rules and procedures,” the organizations wrote in the letter. “As such, we strongly urge the Commission not to adopt the proposal in its current form.”

A wide array of organizations, including many signatories of today’s letter, submitted comments discussing in detail how the proposal adversely affects the market participants, in many cases by creating requirements that are inconsistent with, and duplicative of, existing safeguards enforced by the Commodity Futures Trading Commission (CFTC), federal banking agencies, and state insurance regulators, as well as certain preexisting SEC requirements.

The letter, signed by the below organizations, further expands on these issues, and can be found here.

ABA Securities Association (ABASA)

American Bankers Association (ABA)

Alternative Investment Management Association (AIMA)

American Council of Life Insurers (ACLI)

Association for Financial Markets in Europe (AFME)

Bank Policy Institute (BPI)

Commercial Real Estate Finance Council (CREFC)

Committee of Annuity Insurers

Committee on Capital Markets Regulation (CCMR)

Commodity Market Council (CMC)

Financial Services Forum (FSF)

Financial Services Institute (FSI)

Futures Industry Association (FIA)

Institute for Portfolio Alternatives (IPA)

Insured Retirement Institute (IRI)

International Swaps and Derivatives Association (ISDA)

Investment Company Institute (ICI)

Loan Syndications and Trading Association (LSTA)

Managed Funds Association (MFA)

Money Management Institute (MMI)


National Society of Compliance Professionals (NSCP)

Securities Industry and Financial Markets Association (SIFMA)

Securities Industry and Financial Markets Association Asset Management Group (SIFMA AMG)

The Real Estate Roundtable (RER)

U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC)


SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.  SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).