2 years ago
Congressmen Michael Flood and Ritchie Torres wrote to SEC Chair Gary Gensler, urging him to support custody rules unchanged.
In February, the U.S. Securities and Exchange Commission (SEC) proposed circumstantial changes to the Investment Advisors Act 1940. Currently, the explanation of “qualified custodians” includes state-chartered banks, state-regulated spot companies, and Federally regulated banks and savings associations.
Under the projected changes, the SEC wants to bounds the explanation to see lone banks and savings associations nether Federal regulation.
Congressmen Flood and Torres wrote to Chair Gensler connected May 18, urging him to support the existent explanation unchanged.
They argued that custody of assets for a Registered Investment Advisor (RIA) is simply a “core banking activity.” Therefore, specified enactment should beryllium taxable to the banking rules and regulations nether the existing dual-banking strategy successful the U.S. – with authorities and nationalist banks operating equivalently.
The Congressmen besides pointed retired that authorities regulators already person rules successful spot to support consumers. Uninsured authorities spot companies stay taxable to broad lawsuit extortion rules, similar superior and liquidity standards, and person “prudently offered custody services for centuries.”
Therefore, narrowing the explanation of qualified custodians “will bash the opposite” of providing much information for investors, the Congressmen wrote. They added that fixed the tiny fig of integer plus custodians, limiting the explanation volition apt origin marketplace attraction and adversely interaction competition.
Finally, it was pointed retired that the SEC’s ain draught noted that a narrowing of the explanation mightiness origin investors to region assets from an innovative and harmless custodian – perchance resulting successful assets placed astatine a “greater hazard of loss.”
The station US Congressmen impulse SEC to support explanation of ‘qualified custodian’ unchanged appeared archetypal connected CryptoSlate.
English (US) 