WASHINGTON — The practices of the broker-dealer and investmentadviser industries and their relationships with investors arehoused in a new RAND Corporation report, put together at therequest of the Securities and Exchange Commission.

Following a March 2007 Court of Appeals decision that overturneda 2005 SEC rule permitting non-adviser broker-dealers to chargefees to investors based on account size, SEC and RAND agreed thatRAND would deliver its final, peer-reviewed report inpre-publication format on Dec. 31, 2007, three months earlier thanthe contract had originally required, according to thecommission.

The survey, which was completed by 654 U.S. households, askedabout perceptions of the differences between investment advisersand broker-dealers, experience with financial service providers,and the level of satisfaction with the services received. Six focusgroups with 10 to 12 participants also participated.

SEC Chairman Christopher Cox said the report's findings willassist the commission's efforts in updating its regulations toimprove investor protection. The report is the product of more thana year of empirical study and analysis.

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