SIFMA’s Private Client Legal Committee provides comments to the Securities and Exchange Commission (SEC) on proposed amendments to Rule 206(4)-2, Advisers Act Custody Rule, File No. S7-09-09. The proposed amendments regard custody of client funds and securities by investment advisers. SIFMA supports the SEC’s efforts to enhance controls for maintaining custody of client assets and to improve oversight of custodial arrangements. We recommend, however, that several of the proposed amendments to Rule 206(4)-2 be revised to better balance the costs of the proposed new requirements and the potential benefits they might provide in improving client asset protection. We also suggest several technical amendments to clarify the application of previously-issued Staff guidance on the Rule.