This action is based upon the response to a 2005 SEC rule that “allows broker-dealers to offer fee-based accounts without having to comply with the Investment Advisors Act of 1940” because they are regulated under the 1934 Securities and Exchange Act.
The study will consist of “using data concerning the marketing, sale and delivery of the products and services offered by broker-dealers and investment advisors to individual investors.”
While the article was not specific as to the concerns posed from the public some of those concerns apparently “went beyond the scope of the 2005 rule.”
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