Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, November 1, 2010

SIFMA Releases Impact Assessment Survey of Uniform Standard of Care for BDs and IAs

According to a study commissioned by SIFMA, retail investors would see reduced product and service availability and higher costs under a uniform standard of care for investment advisers and broker dealers that does not recognize distinctions among business models. 

In an impact assessment conducted by consulting firm Oliver Wyman, retail investors were likely to see a negative impact on choice of advisory model, product access, and affordability of investment and advisory services should the SEC adopt the Investment Advisers Act of 1940 standard for all brokerage activity.   To conduct its impact analysis, Oliver Wyman collected data from a broad cross section of retail brokerage firms that serve 38.2 million households and manage $6.8 trillion in client assets.  The survey covered approximately 33 percent of households and 25 percent of retail financial assets in the US, based on estimates from the Federal Reserve Survey of Consumer Finances. 

The study analyzed the potential impact of rulemaking on retail investors by focusing on three core areas: client choice, product access, and affordability of advisory services.

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Posted by: Inventory POS System | Dec 26, 2010 9:20:13 PM

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