September 21, 2004
It seems the SEC has become more aware and concerned with the treatment of consumers in the financial marketplace. As a result, they have done a favorable job enacting proactive changes to help protect these consumers. I believe in continuing to follow this preventive methodology, the SEC should withdraw its rule exempting broker-dealers from the Investment Advisers Act of 1940. If broker-dealers refer to themselves as advisors or counselors, they should be subject to the same laws advisors are subject to and required to undertake the fiduciary responsibility the public assumes they have. By exempting broker-dealers from registration, they are permitted to practice without these fiduciary boundaries leaving consumers misled and unprotected.