SRO rules generally require broker-dealer prices for securities and compensationfor services to be fair and reasonable taking into consideration all relevantcircumstances.
The federal securities laws grant the Commission non-exclusive jurisdiction oversecurities broker-dealers.
If there is no valid pre-dispute arbitration agreement,391 customers may bringactions against broker-dealers in court in connection with disclosure, customer communications (including advertisements), or suitability violations under Exchange ActSection 10(b) and Rule 10b-5
Both regulatory regimes require investment advisers and broker-dealers to adhere to high standards of conduct in their interactions with retail investors
The legal standards of conduct for broker-dealers and investment advisershave differing and complex histories. Both sets of standards evolved in large part underthe general antifraud provisions of the respective federal securities laws, but with differing applications .
Dodd-Frank Act Section 913(g) amends the Advisers Act to add a definition ofthe term retail customer.582 Commenters raised some questions about applicability ofthe definition in certain specific scenarios. We recommend that the Commission engagein rulemaking or issue interpretive...
There are certain key differences in the rights of customers against broker-dealers and clients against investment advisers.
The SEC Staff found that about half of the firms reviewed offered formal training programs to their day traders.78 Some of these programs were offered "in-house" and some were conducted by independent, unregistered entities.
The suitability doctrine stems from the antifraud provisions of the federal securities laws and various SRO rules.
Broker-dealers and their supervisory personnel must comply with the federal securities laws to which they are subject and make reasonable efforts to ensure that persons subject to their supervision also comply with such laws.