• SEC Finalizes Rule on the Broker-Dealer Exemption from the Advisers Act
  • April 26, 2005
  • Law Firm: Reed Smith LLP - Pittsburgh Office
  • On April 12, 2005, the SEC issued a release announcing the adoption of new rule 202(a)(11)-1, addressing the application of the Investment Advisers Act of 1940 to broker-dealers offering certain types of brokerage programs. The new rule relates to section 202(a)(11)(C) of the Advisers Act, which excepts from the definition of "investment adviser" a broker or dealer "whose performance of (advisory) services is solely incidental to the conduct of his business as a broker or dealer and who receives no special compensation therefore" (the "broker-dealer exception").