COURT NIXES SEC RULE GOVERNING FINANCIAL PLANNINGA federal appeals court ruled that the Securities and Exchange Commission overstepped its authority in updating rules governing brokers who offer financial advice.

In a 2-1 decision, the U.S. Court of Appeals for the D.C. Circuit sided with the Financial Planning Association, which sued the SEC over its original 1999 proposal, which was never actually adopted. The association said that the rule violated distinctions that Congress intended to apply to brokers and investment advisors. The court's ruling in early April said that the SEC lacked the authority to give brokers a broad exemption from laws that apply to financial advisors.

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