The agency makes many stern warnings in this other release about the possible dangers in dealing with advisers who charge commissions, and engage in certain other practices routinely followed by brokers. The SEC's regulatory initiatives, seen as a whole, smell discriminatory and anti-competitive. Exempting dealers from the Advisers Act will allow the continuation of brokerages' poor record of disclosure. The exemption is being sought to continue this practice of slipshod disclosure. Brokerages also do not want the liability under the Advisers Act.
Financial planning is encouraged.
The patina of an advisory relationship is buffed bright. Consumers do not understand this important distinction. The Commission should not be an accomplice to the obfuscation. Wall Street firms have argued that being subject to the Advisers Act hinders advising on fixed-income accounts where trading is typically done on a principal basis. This issue can be handled on a discreet basis, which the Commission has been doing.