As if the SEC isn't busy enough these days, the agency is asking for more reading material. Regulators have reopened the comment period for a nearly five-year old proposal related to the application of the Advisers Act to brokers.

The proposal would allow full service brokers who offer investment advice to be exempt from the Investment Advisers Act of 1940, provided that advice is "provided on a non-discretionary basis…solely incidental to the brokerage services; and the broker-dealer discloses to its customers that their accounts are brokerage accounts."

Brokers that do not meet those requirements would only fall under the Advisers Act for his advisory clients.

The agency will accept comments until September 22, and expects to reach a proposal by December 31.

Regulators decided to ask for more comments because people continued to comment after the previous period closed on January 14, 2000.

"In the sixty days between June 1 and August 1, 2004, we received more than 45 comments letters," the SEC stated." The Financial Planning Association, raised some new issues in its comment letter, and has also filed a petition for judicial review of the proposal," stated the SEC.

Comments can be submitted on the SEC website. 

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