# Certain Broker-Dealers Deemed Not To Be Investment Advisers
> **US Securities and Exchange Commission** · Adoption of temporary rule. · Published 2005-01-14 · Effective 2005-01-06 · 70 FR 2712
## Document
- **Document number:** 05-602
- **Category:** other
- **Agency:** US Securities and Exchange Commission
- **Federal Register citation:** 70 FR 2712
- **CFR reference:** 17 CFR 275
- **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.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2005/01/14/05-602/certain-broker-dealers-deemed-not-to-be-investment-advisers)
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