LEGAL GUIDE
Written by attorney Howard Robert Roitman

Definition of the term “retail customer" in securities cases

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 guidance on such points if it adopts and implementsthe uniform fiduciary standard. At that point, among other issues, the Staff recommendsthat the Commission specify that personalized investment advice provided to retailcustomers includes both advice to a specific retail customer on a one-on-one basis and toadvice to a group of retail customers under circumstances in which members of the groupreasonably would believe that the advice is intended for them.583 The Commission couldconsider whether the uniform fiduciary standard should also be extended to persons otherthan retail customers that may also benefit from the additional investor protections thatwould be provided by the standard.

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Howard Roitman 8921 W. Sahara Ave. Las Vegas, NV (702) 631-5650

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