Broker-Dealer Report Reveals Aftermath of SEC Fee Changes
WASHINGTON -- The practices of the broker-dealer and investment adviser industries and their relationships with investors are housed in a new RAND Corporation report, put together at the request of the Securities and Exchange Commission.
Following a March 2007 Court of Appeals decision that overturned a 2005 SEC rule permitting non-adviser broker-dealers to charge fees to investors based on account size, SEC and RAND agreed that RAND would deliver its final, peer-reviewed report in pre-publication format on Dec. 31, 2007, three months earlier than the contract had originally required, according to the commission.
The survey, which was completed by 654 U.S. households, asked about perceptions of the differences between investment advisers and broker-dealers, experience with financial service providers, and the level of satisfaction with the services received. Six focus groups with 10 to 12 participants also participated.
SEC Chairman Christopher Cox said the report's findings will assist the commission's efforts in updating its regulations to improve investor protection. The report is the product of more than a year of empirical study and analysis.