Template:Investment research and the Investment Advisers Act 1940: Difference between revisions

Template:Investment research and the Investment Advisers Act 1940 (view source)

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 Typically, [[broker dealer]]s are ''not'' [[registered investment adviser]]s. Can be, but usually aren’t.
-There ''is'', of course, a [[safe harbor]]. It is set out in Section {{seaprov|28(e)}} of the [[Securities Exchange Act of 1934]]: to qualify for it, a [[broker/dealer]] ’s advice must be “solely incidental” to its provision of “[[broker/dealer]] services”.
+There ''is'', of course, a [[safe harbor]]. It is set out in Section {{seaprov|28(e)}} of the [[Securities Exchange Act of 1934]]: to qualify for it, a [[broker/dealer]]’s advice must be “solely incidental” to its provision of “[[broker/dealer]] services”.
 Under {{tag|SEC}} guidance “[[commission]]s” may be used to purchase [[investment research|research]] on a “[[soft dollar]]” basis.
 The definition of “[[commission]]” is important:
 :''a fee that a [[broker/dealer]] levies for executing a securities transaction as [[agent]].''
 ===Extensions and exceptions===
 *'''[[Riskless principal]]: OK''': The [[SEC]] extended the [[safe harbor]] to certain [[riskless principal]] transactions in [[exchange-listed securities]] in 2001, [[riskless principal]] really being a form of [[quasi-agency]].