The SEC announced that it will not appeal the adverse decision by the U.S. Court of Appeals for the D.C. Circuit, which on March 30 ruled against an SEC rule excepting some broker-dealers from regulation as investment advisers. Instead, the SEC will ask for a 120-day stay of the court's ruling to allow investors and their brokers to respond. The SEC said it will consider whether further rulemaking or interpretations are necessary regarding the application of the Investment Advisers Act of 1940 to these accounts and the issues resulting from the court's decision.

According to the SEC press release, the court ruling affects an estimated one million brokerage accounts, holding an estimated $300 billion in assets. The SEC also announced that it has approved additional emergency funding to accelerate an ongoing RAND Corporation study of the marketing, sale, and delivery of financial products and services to investors, allowing the study to be delivered by December 2007, several months ahead of schedule. The study is intended to provide an empirical foundation for considering improvements in regulatory and legislative rules in this area.

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