The Investment Company Institute is supporting a controversial rule proposal that would make it easier for broker/dealers to change how they sell their services.

An SEC proposal that exempts broker/dealers from registering as investment advisors for some of the services they perform may benefit investors, said Tamara K. Reed, ICI associate counsel, in a letter to the SEC Jan. 14. The rule proposal may help investors by permitting broker/dealers to charge fees based on an investor's assets under management rather than on transactions, without facing additional regulation, Reed said.

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