SEC Reopens Comment Period for Enhanced Safeguarding Rule for Registered Investment Advisers Proposal

The U.S. Securities and Exchange Commission, SEC, has published a press statement to announce the upcoming reopening of its consultation on proposed enhancements to its client asset custody rule under 17 CFR Part 206, § 275.206(4)-2. The initial consultation was launched earlier this year and ended on May 8, 2023.
To recall, on February 15, 2023, the Commission launched a consultation on a proposal to expand the scope of the current rule to include ALL client assets – including „funds, securities, or other positions“- and to expand the scope of obligations of investment advisers as to the safeguarding of client assets and the maintenance of records pertaining to client assets. The aim was / is to provide further, more far-reaching protection to investors as regards the handling of their investments. Please see EventID 19800 for a detailed description of the proposed rule amendments.
The SEC is now announcing that it will reopen the comment period on the consultation for another 60 days upon publication of the „announcement statement“ in the Federal Register to provide more time for interested parties to respond to its proposal.