Here it comes, folks! The broker-dealers who are not registered as investment advisors must now give brokerage customers a disclosure stating that their interests may not always be the same as the customer. This follows on the heels of a compliance deadline for a rule that the Securities and Exchange Commission adopted in April exempting broker-dealers from registration as investment advisors when offering certain fee-based advisory programs to the public.
In order to reduce confusion in the public's eyes about the differences in regulatory standards for sales agents and financial advisors, the SEC in July then adopted a compliance deadline requiring registered representatives of a broker-dealer to provide customers with a prominent consumer warning statement that the account is a brokerage, and not an advisory account. The statement also refers them to someone in the brokerage firm for additional questions.
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