Thu, July 07, 2022


SEC proposes investment planning reforms

The SEC is seeking public comments on the proposed rules for intermediaries to provide assisting tools to asset allocation and investment planning.

This would allow investors to use more tool-specific services and have more investment alternatives. 
Given wider varieties of investment advisory services and larger pools of investment product information, it is difficult for investors to analyse and make comparison efficiently, the firm said. Besides, brokers are increasingly leaning toward investment advisory services, especially those related to asset allocation, and the use of technology to increase service choices and efficiency in meeting investors’ demands, it added.  
The SEC is, therefore, proposing draft rules on providing assisting tools for efficient investment planning whereby securities brokers and derivatives agents would be allowed to offer services on asset allocation and investment planning in the forms of programme trading and portfolio advice with execution. 
The draft rules would grant a waiver of private fund licence and derivatives fund manager licence for both services above which would be considered incidental to brokerage, the SEC said. However, the intermediaries must make a prior agreement with the clients the asset allocation or the investment planning services and parameters set in advance, it said. In addition, the intermediaries must make sure that the clients would open a separate trading account from a traditional one and prepare service agreements and comply with the rules on work systems and professional duties.
In light of the rules, the SEC is also proposing that the Capital Market Product Trading Services with Limited Discretion according to Clients’ Pre-determined Investment Scope rules be repealed and such service considered as a part of the portfolio advisory with execution or standing order, as the case may be. 
The consultation paper is available at

Published : February 27, 2019

By : The Nation