Amid the coronavirus pandemic and the resulting market volatility, investors, seeking a cheaper alternative to SPY, poured $16 billion in Vanguard's VOO in first six months of 2020.
The Court ruled 8-1 in Liu vs. the Securities and Exchange Commission that the practice was allowable provided that the fees did not exceed the "wrongdoer's net profits," according to a majority opinion written by Justice Sonia Sotomayor.
The regulatory agency for broker/dealers has changed language to make clear that its rule would not apply to recommendations covered by the SEC's rule, which will be implemented on June 30.
