SIFMA Asks Firms To Avoid Interruptions In Wake Of FPA Vs. SEC Case

The Securities Industry and Financial Markets Association (SIFMA) has noted the decision by the D.C. Circuit Court of Appeals in the case Financial Planning Association (FPA) vs. the Securities and Exchange Commission (SEC) and requested that member firms work to

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The Securities Industry and Financial Markets Association (SIFMA) has noted the decision by the D.C. Circuit Court of Appeals in the case Financial Planning Association (FPA) vs. the Securities and Exchange Commission (SEC) and requested that member firms work to avoid interruptions to investors.

“In the wake of this decision, our highest priority must be to our investors – ensuring there is no disruption to our customers while we wait for the SEC to provide interim guidance which conforms to the court’s ruling,” said Ira Hammerman, general counsel at SIFMA.

“In the meantime, we encourage firms affected by today’s verdict to comply with the decision while simultaneously working to provide customers as much disclosure as is reasonable, given the ruling,” added Hammerman.

The FPA suit successfully argued that the SEC should not have adopted regulations which exempted certain broker-dealers from registering as advisers. Now that the SEC rules have been overturned, some regulatory uncertainty will exist until new rules are promulgated. SIFMA will continue to closely monitor developments and work with regulators and members to resolve this issue.

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