SEC Reopens Comment Period on Application of Advisor Act

August 20, 2004 (PLANSPONSOR.com) - The Securities and Exchange Commission (SEC) reopened the comment period yesterday on a 1999 rule proposal that focuses on the application of the Adviser Act of 1940.
By PS

The proposed rule on the application of the Act has to do with broker-dealers that offer certain full-service brokerage services for an asset-based fee instead of traditional commissions. Brokers who garner compensation through asset-based fees may be the subject of regulation under the Act. The rule proposed in 1999 would make the nature of the services provided – rather than the form of compensation – the principal factor in determining whether the Act applies.

The comment period was reopened after a recent surge in additional comments. The new deadline for comments is now September 15 th , with the SEC hoping to make a final ruling by the end of the calendar year, according to an SEC press release.

– Kip McDaniel

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