Regulatory Alerts2019-07-12 | 2019-12209Added
Commission Interpretation Regarding the Solely Incidental Prong of the Broker-Dealer Exclusion From the Definition of Investment Adviser
The Securities and Exchange Commission issued this interpretation to clarify the scope of the broker-dealer exclusion from the definition of investment adviser under the Investment Advisers Act of 1940. The document defines when investment advice provided by a broker-dealer is considered solely incidental to their business and confirms that such services must be provided for no special compensation to qualify for the exclusion. This guidance aims to resolve industry disagreements regarding the permissibility of various advisory activities, including exercising investment discretion and account monitoring, within the regulatory framework.
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