August 18, 2010
-There are two distinct services that this legislation is attempting to meld into one. Financial planning is not similar (but it is related to) investment strategy. It is appropriate that Financial Planners provide a fiduciary relationship with their client. It is also appropriate that Broker/Dealers only provide what is suitable to the risk tolerance of public they serve. This bill is similar to making the stationary store responsible for someone's spelling.
The financial planning business is benefited by this bill by requiring compliance to their standards regardless of customers interests.
It makes more sense to require all financial planners to have various securities licenses to insure they are aware of the strategic and tactical results of their suggestions and they are not just allocating a straight percentage accross various mutual funds.