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On 8 May 2023, the public consultation closed on the Securities and Exchange Commission's (SEC) proposed rulemaking on Safeguarding Advisory Client Assets. The stated goal of the proposed rules, according to the SEC, is the increased protection of investors' assets by registered investment advisers, as these would have to provide for a higher level of custodial protection when dealing with clients' assets. This increased protection would be achieved by proper segregation of assets in different accounts to protect the assets in the case of insolvency of the registered investment adviser. The rules would represent an amendment to rule 206(4)-2 of the Investment Advisers Act of 1940.
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