{"id":4489,"date":"2007-07-09T13:54:30","date_gmt":"2007-07-09T13:54:30","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/07\/wall_street_wars_part_iv_after_1"},"modified":"2021-09-20T15:41:39","modified_gmt":"2021-09-20T20:41:39","slug":"wall-street-wars-part-iv-after-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/wall-street-wars-part-iv-after-1\/","title":{"rendered":"Wall Street Wars, Part VI: After Losing “Merrill Rule” Case, SEC is Exploring Changes in Investment Advisors Act – BEWARE!"},"content":{"rendered":"

\t\t\t\tFirst, a recap: The Investment Advisors Act of 1940 states that investment advisors have a fiduciary duty to clients. Stock Brokerage firms have worked for decades attempting to escape any fiduciary duty to their clients. When they decided that, in addition to being brokerage firms, becoming investment advisors was also lucrative, what were they to do? <\/p>\n

Simple, use their political influence at the SEC. While the SEC’s job is to protect investors, as political appointees, its Commissioners are political (the present SEC Chairman is a former activist Republican Congressman). To accommodate Wall Street, the SEC simply said Wall Street firms were exempt from the Investment Advisors Act. <\/p>\n

Crying foul, the Financial Planning Association, those who are not stock brokers, sued the SEC – and, two months ago, they won! Stinging from the defeat, the SEC decided not to appeal. (After all, how can the SEC exempt anyone from laws written by Congress?) Wounded, Wall Street then asked for and was granted several months to decide what to do.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

First, a recap: The Investment Advisors Act of 1940 states that investment advisors have a fiduciary duty to clients. Stock Brokerage firms have worked for decades attempting to escape any fiduciary duty to their clients. 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