It should come as no surprise that the current Securities and Exchange Commission under Chair Atkins would retreat from the rule-making of the SEC under Chair Gensler. We’ve seen it with the rapid retreat on crypto. Last week the SEC formally withdrew 14 proposed rule-makings.
Happy to see the Safeguarding Advisory Client Assets proposal go away. It was largely an anti-crypto rule. But it would have caused major problems for all alternative asset investors.
Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business Development Companies proposal is gone. It was tough to pull such a diverse group of firms into a single set of practices. Most firms take cyber very seriously anyhow. The Rule added little to investor safety.
Outsourcing by Investment Advisers is off the table. This was a topic during a recent exam. “Your most important service providers?” depends on the day. If I have a water leak on the 40th, then Joe’s Plumbing is my most important vendor and no I haven’t done a full background check on him.
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