Safeguarding Advisory Client Assets (SIFMA AMG)


SIFMA AMG provided comments to the U.S. Securities and Exchange Commission (SEC) on the proposed new rule for safeguarding advisory client assets.

See related: Safeguarding Advisory Client Assets


Submitted To


Submitted By







May 8, 2023

Submitted electronically via SEC.gov
Ms. Vanessa A. Countryman Secretary
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC

Re: File Number S7-04-23; Release No. IA-6240; Safeguarding Advisory Client Assets (the “Proposal”)1

Dear Ms. Countryman:

The Asset Management Group of the Securities Industry and Financial Markets Association (“SIFMA AMG”)2 appreciates the opportunity to provide comments to the Securities and Exchange Commission (the “Commission”) on the proposed new rule for safeguarding advisory client assets.

SIFMA AMG supports the Commission’s principal aim of preventing loss, misuse, and misappropriation of client assets. SIFMA AMG also supports revisiting, re-assessing, and updating investment adviser regulatory requirements for custody and safeguarding. As fiduciaries, our members share the Commission’s mission to ensure that client assets are protected from misappropriation and misuse. Our experience with markets and operational logistics informs our perspectives on the Proposal. As discussed below, our members have serious concerns about the breadth and consequences of the Proposal and urge the Commission to exercise caution in moving forward.


1 Safeguarding Advisory Client Assets, SEC Release No. IA-6240 (Mar. 9, 2023) (Proposal).

2 SIFMA AMG brings the asset management community together to provide views on U.S. and global policy and to create industry best practices. SIFMA AMG’s members represent U.S. and global asset management firms whose combined assets under management exceed $45 trillion. The clients of SIFMA AMG member firms include, among others, tens of millions of individual investors, registered investment companies, endowments, public and private pension funds, UCITS and private funds such as hedge funds and private equity funds. For more information, visit http://www.sifma.org/amg For more information, visit http://www.sifma.org/amg. SIFMA AMG appreciates the assistance of Jay Baris, Kenny Terrero, Chuck Daly and Victoria Anglin of Sidley Austin LLP in the preparation of this response.