FIA voices continued opposition to SEC’s proposed custody rules for FCMs

31 October 2023

FIA has filed additional comments opposing application of the US Securities and Exchange Commission’s proposed "safeguarding" rule to FCMs. The SEC recently re-opened the public comment period on the proposal, which would replace its existing custody rule for qualified custodians, including Futures Commission Merchants (FCMs).

Echoing comments it filed in May with the SEC, FIA again highlighted the challenges the proposal would raise for FCMs, investment advisers and clients. FIA’s letter said the proposal is "a stark – and unsubstantiated – departure from the Commission’s longstanding position" that the CFTC segregation rules are sufficient to protect customer assets held by FCMs. FIA said the SEC must acknowledge the CFTC customer protection regime and explain why it believes FCMs should be subject to new rules to accomplish its stated goals in the proposal.

Read the most recent FIA comments here.

  • FIA
  • Customer Protection \ Segregation
  • Advocacy