Court Rules SEC Exceeded Its Authority

Law360, New York (March 30, 2007, 12:00 AM EDT) -- In a blow to the U.S. Securities and Exchange Commission, a federal appeals court has struck down an SEC rule that exempted some securities brokers from registering as investment advisors.

On Friday, the U.S. Court of Appeals for the District of Columbia Circuit ruled the SEC had exceeded its authority when it instituted the rule, which exempted brokers with fee-based accounts from registering as investment advisers as long as the advice they provide to the accounts is “solely incidental” to their trading activity.

“We will analyze...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.