In March 2007, the D.C. Court of Appeals vacated Rule 202(a)(11)-1 under the Investment Advisers Act of 1940, as amended, on the grounds that the SEC lacked statutory authority to adopt the rule. The SEC is awaiting the results of a study of the financial products offered by broker-dealers and investment advisers before proposing new rules in the area. The D.C. Circuit decision and the SEC's actions have important implications both for the ability of the SEC to promulgate future rules and for the operation of the brokerage and advisory industries. To learn more about these implications, please read Ropes & Gray's client advisory by clicking on "Download PDF."