SIFMA Wants SEC To Appeal "Merrill Rule" Decision Despite Investor Confusion and Desires

The brokerage firm trade group wants to take another shot at preserving the controversial broker-dealer registration exemption. SIFMA claims that investors should have choices, and the choice should include fee-based accounts, without the consequence that such accounts convert the relationship from brokerage to investment advisory / fiduciary.

At the same time that this news was reported, a survey by Consumer Federation of America and Zero Alpha Group shows that fewer than 1/3 of investors understand that the "primary service" of stockbrokers is to buy and sell securities and not to render investment advice. That said, more than 90% of investors surveyed believe that the same investor protection rules should apply to both stockbrokers and financial planners when they offer the same kind of investment advice services.

Source: Investment News