On February 15, 2023, the SEC proposed new Rule 223‑1 (Safeguarding Rule) under the Investment Advisers Act of 1940, which would replace the current custody rule and make related changes to the recordkeeping rule governing investment adviser books and records, as well as Form ADV (collectively, the Proposal). Although the Proposal’s treatment of digital assets has garnered most of the public’s attention, the Safeguarding Rule’s potential impact on all investment advisers is far-reaching and would substantially increase legal and operational costs and burdens. This guest article by Greenberg Traurig attorneys Ryan F. Helmrich and Nathan M. Iacovino discusses the full scope of the Safeguarding Rule; outlines the Proposal’s new requirements and potential impact on investment advisers; and identifies issues of key importance on which hedge fund managers should submit comments. The deadline for comments on the Proposal is May 8, 2023. For insights from other Greenberg Traurig attorneys, see “Ransomware and Sanctions in the Time of War” (Aug. 18, 2022).