Certain Broker-Dealers Deemed Not To Be Investment Advisers
SEC · other · Published 2005-01-14 · Effective 2005-01-06 · 70 FR 2712
Document
Document number
05-602
Federal Register citation
70 FR 2712
CFR reference
17 CFR 275
Type
Rule
Action
Adoption of temporary rule.
Category
other
Agency
US Securities and Exchange Commission
Publication date
2005-01-14
Effective date
2005-01-06
Docket
Release Nos. 34-50979
Abstract
The Securities and Exchange Commission is adopting a temporary rule addressing the application of the Investment Advisers Act of 1940 to broker-dealers offering certain types of brokerage programs. Under the rule, a broker-dealer providing nondiscretionary advice that is solely incidental to its brokerage services is excepted from the Investment Advisers Act regardless of whether it charges an asset-based or fixed fee (rather than commissions, mark-ups, or mark-downs) for its services. The temporary rule also provides that broker-dealers are not subject to the Investment Advisers Act solely because they offer full- service brokerage and discount brokerage services, including execution- only brokerage, for reduced commission rates. The temporary rule will expire on April 15, 2005.