SEC proposes new rules to protect customer assets

02/16/2023 14:29 • AI Insights • 90 views

It is reported that the SEC of the United States published the “SEC Proposal to Strengthen the Protection Rules for Registered Investment Advisers” on its official website. The article said that the Securities and Exchange Commission of the United States proposed to amend the rules today to strengthen the protection of the customer assets managed by registered investment advisers. If approved, these changes will be made in accordance with Article 206 (4) – 2 of the Rules of Custody of the Committee for the Revision and Redesignation of the Investment Advisers Act of 1940, and will amend some relevant record-keeping and reporting obligations.

US SEC Issued Rules to Strengthen the Protection of Registered Investment Advisers

Analysis based on this information:

The Securities and Exchange Commission (SEC) has laid out new proposals to enhance the protection of customer assets managed by registered investment advisers. The rules proposed will amend certain record-keeping and reporting obligations in accordance with Article 206(4)-2 of the Rules of Custody of the Committee for the Revision and Redesignation of the Investment Advisers Act of 1940.

The main purpose of these changes is to ensure that customers’ assets are safeguarded and not misused by investment advisers. To achieve this, the proposed rules will require advisers to maintain additional records regarding the custody of customer assets. This will include any arrangements with third-party custodians, information regarding bank accounts used for client funds, and any foreign custody arrangements.

The SEC also proposes to improve the frequency and level of detail provided in customer account statements. Investment advisers will be required to deliver quarterly statements to customers, which will provide a more detailed summary of their account and any transactions that have taken place during the quarter.

These changes will only affect registered investment advisers, who must already comply with strict regulatory requirements, including periodic reviews by the SEC. The additional obligations imposed by the proposed rules will help to strengthen customer trust in the industry and provide greater assurance that their assets are being properly managed.

This is a welcome development given the recent increase in fraudulent activities in the Investment Advisory sector- including those by Ponzi schemes. The proposal is currently open for a 90-day comment period, after which the SEC will take into account the feedback before making any final changes.

In conclusion, this proposal, if accepted, will reinforce the need for registered investment advisers to demonstrate accountability and transparency in their activities, thereby enhancing the protection of customer assets.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/16/sec-proposes-new-rules-to-protect-customer-assets/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

SEC proposes new rules to protect customer assets

US SEC Issued Rules to Strengthen the Protection of Registered Investment Advisers

Recommended articles