Certain Broker-Dealers Deemed Not To Be Investment Advisers

Résumé

Broker-dealers have begun offering their customers full service brokerage (including advice) for an asset-based fee instead of traditional commissions, mark-ups, and mark-downs. Some full service broker-dealers have also begun offering electronic trading for reduced brokerage commissions. The Commission is publishing for comment a new rule under the Investment Advisers Act of 1940 (Advisers Act) that would address the application of the Advisers Act to brokers offering these programs. The new rule would keep broker-dealers from being subject to the Advisers Act solely as a result of re-pricing their services.