SEC Backs Off Dealer Rule, but Legal Uncertainty Remains — SEC Roundup
By Nicolas Morgan
By Tom Zaccaro
Welcome to SEC Roundup, a bimonthly video series by former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Choice Advocates Network.
The SEC’s controversial dealer rule was struck down in federal court, and the agency has since withdrawn its appeal (and apparently backed off of other ongoing litigation) — effectively killing the rule. But the fight over who qualifies as a securities dealer isn’t over. While the rule itself is no longer in effect, past court rulings have upheld the SEC’s broader interpretation in certain enforcement cases, leaving legal uncertainty.
In this episode, Morgan is joined by Daniel Austin and Suzan Rose from the Alternative Investment Management Association to break down the latest developments. They discuss the SEC’s attempt to redefine securities dealers through rulemaking and litigation, why the court struck down the dealer rule and what the SEC’s withdrawal of its appeal means, the impact of past rulings that supported an expanded dealer definition, and what’s next for pending litigation and future SEC enforcement strategies.
As the SEC reassesses its approach, financial professionals and market participants must stay alert to potential shifts in regulatory enforcement. Tune in for expert analysis on where this issue stands and what comes next.
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