The EDA filed a brief at the Supreme Court in the Lucia v. SEC case, which will be heard in early April. The EDA believes important Constitutional issues exist in this case with respect to Due Process and Separation of Powers. We asked the Supreme Court to reverse the judgment of the United States Court of Appeals for the District of Columbia Circuit on these issues in an effort to preserve the basic constitutional protections provided by the founders of… read more →
In the wealth management business there are two models: one in which the financial advisors (FAs) are independent contractors and are eligible for the pass-through tax treatment and the other model in which the FAs are employees (Employee FAs) and not eligible for the pass-through tax treatment. We believe that adopting language in the tax code that chooses one business model over another was an unintended consequence of the tax reform effort, and that it can be corrected. EDA Letter to… read more →
EDA submitted a letter asking the SEC to create a uniform best interest standard for broker-dealers and investment advisors using the DOL Impartial Conduct Standards as its baseline. Letter to SEC on Best Interest Standard 2017
Reforming the capital markets has become a priority for investors, issuers, public equity firms, and regulators in the wake of the dramatic decline in the number of public companies in the U.S. The EDA had the chance to discuss how to achieve this objective with NASDAQ. https://listingcenter.nasdaq.com/clearinghouse.aspx#qna
EDA strongly supports efforts to improve the capital formation process, the secondary trading, and the research environment for small businesses. Increased access to capital will lead to job creation. Small Business Access to Capital Submission to Treasury
The EDA is a member of the Corporate Governance Coalition for Investor Value, which sent a letter today to the SEC asking it to increasing its shareholder proposal re-submission thresholds. The coalition believes that “[r]ule14a-8 increasingly has been used by a minority of activist shareholders to promote agendas that are uncorrelated to enhancing long-term value for shareholders” who waste company resources by submitting “the same proposals year after year”. CGCIV Final Resubmission Thresholds letter (002)
The EDA sent a letter to FINRA recommending that it not move forward with its Proposal to provide a safe harbor for desk commentary. The EDA believes that the Proposal is not workable, it lacks an adequate cost-benefit analysis, it misconstrues how the sales and trading business of its membership works in practice, and it puts examiners in the unenviable position of evaluating desk commentary under the subjective “I know it, when I see it” standard. The Proposal imposes the… read more →
The Equity Dealers of America submitted a comment letter to the SEC urging the agency to decline to approve a rule proposal from Bats Exchange that would further complicate the equity market structure and add little to no value to market participants. EDA Letter to SEC on Bats Proposal SR-BatsBZX-2017-34
EDA, along with several other trades, expresses its concerns with Nevada law SB 383, which removes the exemption for broker-dealers from the definition of financial planner. Final Joint Letter to Foley_June 23 2017 (002)
The Equity Dealers of America (EDA) appreciates the opportunity to comment on the Financial Industry Regulatory Authority’s (FINRA) notice regarding potential enhancements to certain engagement programs (Engagement Notice). Read the Full Letter
“The EDA also believes that the Fiduciary Rule should be rescinded in its entirety and that a further delay to the applicability date by the DOL will be necessary to achieve that end. We strongly support this course of action.” Click here, to read the letter.
“Today the Equity Dealers of America filed a comment letter with the DOL supporting its proposed delay of the applicability date.” Click here, to read the letter.
“Today the Equity Dealers of America filed a comment letter with FINRA supporting its proposed amendment to Rule 2210. Two highlights from the letter are set forth below: “Providing registered representatives (“RR”) of EDA members with the flexibility to use the Illustration with their clients when discussing asset allocation and investment strategies as set forth in the Regulatory Notice 17-06, even if we ultimately decide not to use it, would place our members on a level playing field with stand-alone… read more →
The Equity Dealers of America write Speaker Ryan and Leader Pelosi to urge the U.S. House of Representatives to take up and pass H.J. Res. 88, ‘Disapproving the rule submitted by the Department of Labor relating the definition of the term “Fiduciary”‘. Click here, to read the letter.