SEC Not to Appeal Decision Vacating Broker-Dealer Exemption Rule
May 01, 2007
On May 14, 2007, the SEC announced that it would not appeal a decision of the Court of Appeals for the District of Columbia ("Court") that vacated an SEC rule. That rule would have exempted broker-dealers receiving asset-based fees for brokerage services from registration as investment advisers. This legal update explores the implications of the Court's opinion as well as the SEC's reaction.