SEC Seeks Comment on Adviser Standards of Care

As anticipated, the Securities and Exchange Commission is looking for public comments as it undertakes a new look at adviser standards.


Specifically, the SEC has published a request for public comment “to inform its study of the obligations and standards of care of broker-dealers and investment advisers providing personalized investment advice about securities to retail investors”.

The study is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which President Obama signed into law on July 21, 2010 (see Financial Services Reform Compromise Reached).

As required by the law, the SEC is soliciting comments on issues related to the effectiveness of existing standards of care for brokers-dealers and investment advisers, and whether there are gaps, shortcomings, or overlaps in the current legal or regulatory standards.

“Broker-dealers and investment advisers provide critical financial services to millions of American investors,” said SEC Chairman Mary L. Schapiro. “A system that fairly and effectively regulates these market participants is essential to protecting investors. We look forward to receiving comments from the public on these important issues.”

The public comment period will remain open for 30 days, following publication of the comment request in the Federal Register.

The official request for comment is at

Comments can be submitted HERE