{"id":200,"date":"2007-07-25T11:58:47","date_gmt":"2007-07-25T11:58:47","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/07\/wall_street_wars_vii_sec_chair_1"},"modified":"2021-09-20T15:41:15","modified_gmt":"2021-09-20T20:41:15","slug":"wall-street-wars-vii-sec-chair-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/","title":{"rendered":"Wall Street Wars VII:  SEC Chairman to RIAs &#8211; &#8220;Greetings&#8221; &#8211; A Regulator on Steriods?"},"content":{"rendered":"<p>\t\t\t\tAs a review:  Instead of charging commissions to sell investments and products to their clients, as do brokerage firms, investment advisors charge a small percentage to advise clients how to invest their money.  Wall Street decided this would be a lucrative addition to their business, but did not want to owe a fiduciary duty (of good faith) to their clients as required by the Investment Advisors Act of 1940.  They therefore had their politically appointed friends at the SEC exempt them from registering as advisors.  This was called the &#8220;Merrill Rule.&#8221;<\/p>\n<p>Investment advisors then cried foul and their largest association filed suit against the SEC.  A few months ago, they won!  After brooding for a few weeks but realizing the SEC had no power to exempt anyone from the law, the SEC&#8217;s Chairman decided not to appeal.  Instead, the Wall Street-friendly former Congressman began his retaliation.  <\/p>\n<p>The SEC Chairman first, without waiting for others at the SEC, personally asked Congress to investigate certain practices of investment advisors.  The SEC then sprung a hasty investigation of some investment advisors and soon reported only one had properly disclosed facts in its performance claims.  <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/\"  title=\"Continue Reading Wall Street Wars VII:  SEC Chairman to RIAs &#8211; &#8220;Greetings&#8221; &#8211; A Regulator on Steriods?\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a review: Instead of charging commissions to sell investments and products to their clients, as do brokerage firms, investment advisors charge a small percentage to advise clients how to invest their money. Wall Street decided this would be a lucrative addition to their business, but did not want to owe a fiduciary duty (of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3801],"tags":[],"class_list":["post-200","post","type-post","status-publish","format-standard","hentry","category-sec"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Wall Street Wars VII: SEC Chairman to RIAs - &quot;Greetings&quot; - A Regulator on Steriods? &#8212; Investor Lawyers Blog &#8212; July 25, 2007<\/title>\n<meta name=\"description\" content=\"As a review: Instead of charging commissions to sell investments and products to their clients, as do brokerage firms, investment advisors charge a small &#8212; July 25, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Wall Street Wars VII: SEC Chairman to RIAs - &quot;Greetings&quot; - A Regulator on Steriods? &#8212; Investor Lawyers Blog &#8212; July 25, 2007\" \/>\n<meta name=\"twitter:description\" content=\"As a review: Instead of charging commissions to sell investments and products to their clients, as do brokerage firms, investment advisors charge a small &#8212; July 25, 2007\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Wall Street Wars VII: SEC Chairman to RIAs - \"Greetings\" - A Regulator on Steriods? &#8212; Investor Lawyers Blog &#8212; July 25, 2007","description":"As a review: Instead of charging commissions to sell investments and products to their clients, as do brokerage firms, investment advisors charge a small &#8212; July 25, 2007","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/","twitter_card":"summary_large_image","twitter_title":"Wall Street Wars VII: SEC Chairman to RIAs - \"Greetings\" - A Regulator on Steriods? &#8212; Investor Lawyers Blog &#8212; July 25, 2007","twitter_description":"As a review: Instead of charging commissions to sell investments and products to their clients, as do brokerage firms, investment advisors charge a small &#8212; July 25, 2007","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Wall Street Wars VII: SEC Chairman to RIAs &#8211; &#8220;Greetings&#8221; &#8211; A Regulator on Steriods?","datePublished":"2007-07-25T11:58:47+00:00","dateModified":"2021-09-20T20:41:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/"},"wordCount":407,"articleSection":["SEC"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/","url":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-vii-sec-chair-1\/","name":"Wall Street Wars VII: SEC Chairman to RIAs - \"Greetings\" - A Regulator on Steriods? 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