Investment Adviser and Broker-dealer Industry Practices Report

According to SEC Publishes Text of RAND Report on Investment Adviser, Broker-Dealer Industries, 2008-1, Jan. 3, 2008:

The Securities and Exchange Commission has received and posted on its Web site the text of the RAND Corporation’s final report on practices in the investment adviser and broker-dealer industries.

“The Commission has been anxious to receive RAND’s study of the investment adviser and broker-dealer industries, and the nature of their relationships with customers. The report will assist the Commission’s efforts to update our regulations to improve investor protections in today’s new marketplace[.]”***

Following a March 2007 Court of Appeals decision that overturned a 2005 SEC rule permitting non-adviser broker-dealers to charge fees to investors based on account size, the SEC and RAND agreed that RAND would deliver its final, peer-reviewed report in pre-publication format on Dec. 31, 2007, three months earlier than the contract had originally required.***

Special thanks to Neil E. Hendershot, Esq. (Attorney at law, Goldberg Katzman, P.C., Adjunct Professor, Widener University School of Law) for bringing this resource to my attention.

You can read more about this topic on Neil’s blog at PA Elder, Estate & Fiduciary Law Blog.