The SEC’s Challenging New Guidance on the “Solely Incidental” Broker Exemption

October 23, 2019 at 11:00am12:00pm
National Society of Compliance Professionals
Hilton Baltimore, Maryland

401 W Pratt Street

Baltimore, MD 21201

This session will focus on interpreting the SEC’s new guidance regarding the “solely incidental” prong of the broker-dealer exclusion from the definition of investment adviser in Section 202(a)(11)(C) of the Investment Advisers Act of 1940. Attendees will learn how the “solely incidental” concept has changed with the adoption of Regulation BI and will gain practical insights for implementing a compliance program to adhere to this complex and evolving standard.
Advanced Preparation: None
Pre-requisites for participation: None
Learning Objectives:
• Understand the history of the “Solely Incidental” exemption and its application to BDs
• Compare the new guidance with prior interpretations – Is it consistent?
• Discuss considerations of discretionary authority and its place with the “Solely Incidental” exemption
• Distinguish guidance vs. practice: monitoring accounts and pitfalls under the “Solely Incidental” Broker exemption