The American Bankers Association and 2 lots market groups today prompted the Securities and Exchange Commission to turn down proposed rulemaking on securing advisory customer possessions, stating the modifications under factor to consider would lead to “a myriad of negative impacts on investors,” consisting of on their access to different services, possessions and markets with reputable guidelines and treatments.
The FDIC proposition would widen the application of the existing financial investment consultant custody guideline, broadening its protection from funds and securities to all customer possessions, in addition to change the meaning of a certified custodian and make a number of other modifications. In their letter, the groups stated they support the commission’s objective of making sure high levels of financier security, however the proposition in its existing kind makes modifications to the custody structure without a clear policy reasoning. The American Bankers Association and 2 lots market groups the other day prompted the Securities and Exchange Commission to turn down proposed rulemaking on securing advisory customer possessionsAmong its issues, the proposition would lead to greater costs for custodial services, successfully restrict advisory customers from purchasing possessions such as physical products, and develop considerable brand-new commitments for independent accounting companies that would increase audit expenses and potentially restrict the schedule of services, they stated.
“For these reasons, we urge the commission not to adopt the proposal in its current form,” the groups stated. “Further, any future proposed rulemaking should be based on an updated economic analysis that accounts for all relevant costs, narrowly tailored to specific instances where the current custody framework has demonstrably failed to protect investors from loss or misappropriation of traditional assets, and developed in close consultation with the primary regulators of the impacted entities, markets and products.”