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Compliance August 20, 2004
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.
Reported 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