The Securities Industry and Financial Markets Association announced today that it is urging the US Securities and Exchange Commission to ask the D.C. Court of Appeals for a rehearing on the issue of fee-based brokerage accounts.

Late last month, the court ruled in favor of the Financial Planning Association in its case against the commission, finding the SEC exceeded its statutory authority when it adopted a rule which exempted broker-dealers offering fee-based brokerage accounts from registering as advisers.

“This ruling has the potential to significantly impair an important element of consumer choice for American investors and we strongly urge the SEC to ask for a rehearing. With this decision, one million investors, with nearly $300 billion in assets, could see a significant reduction in their range of choices and options for receiving and paying for financial services. Investors deserve no less than robust choice and vigorous competition,” said Marc Lackritz, president and CEO of SIFMA, in a news release. Fee-based accounts now make up about 20% of all retail brokerage accounts.

The rule remains in effect until the court issues its mandate, which is expected to occur on or shortly after May 14, or later if the SEC seeks rehearing.

http://www.sifma.org/news/42771328.shtml


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Oil prices regained some ground Tuesday after sliding nearly US$3 barrel the day before on expectations of oversupply at a key North American delivery point.

Light, sweet crude for May delivery rose 38¢ to settle at US$61.89 on the New York Mercantile Exchange.

On Wall Street, the Dow Jones industrial average rose for an eighth straight, the longest winning streak in four years, as a rebound in oil prices lifted energy shares and Citigroup gained on expectations of big job cuts.

Reports that Citigroup Inc. will cut at least 15,000 jobs lifted the No. 1 U.S. bank’s shares 1.6%, supporting the Dow

The Dow rose 4.71 points, or 0.04%, to end at 12,573.85. The S&P 500 gained 3.78 points, or 0.26%, to 1,448.39. The Nasdaq composite index advanced 8.43 points, or 0.34%, to 2,477.61.

After markets closed, Alcoa kicked off first-quarter earnings season with an 8.9% increase in profit, helped by resurgent aluminum prices.