Commission Guidance on the Scope of Section 28(e) of the Exchange Act
SEC · other · Published 2002-01-02 · Effective 2002-01-02 · 67 FR 6
Document
Document number
01-32199
Federal Register citation
67 FR 6
CFR reference
17 CFR 241
Type
Rule
Action
Interpretation.
Category
other
Agency
US Securities and Exchange Commission
Publication date
2002-01-02
Effective date
2002-01-02
Docket
Release No. 34-45194
Abstract
We are publishing interpretive guidance on the application of Section 28(e) of the Securities Exchange Act of 1934 ("Exchange Act"). This section provides a safe harbor to money managers who use the commission dollars of their advised accounts to obtain research and brokerage services. The guidance we are publishing today clarifies that the term "commission" for purposes of the Section 28(e) safe harbor encompasses, among other things, certain transaction costs, even if not denominated a "commission."