August 24, 2010
The suitability standard governing broker-dealers and registered representatives is a robust and heavily enforced standard. Compare and contrast it to how you see the fiduciary standard governing investment advisers is applied and enforced.
Compliance costs-both in terms of finances and time-are high, and those costs are eventually felt by clients. Adding another layer of regulation means another layer of compliance, and even more cost to clients.
Our industry is regulated enough. It is interesting how someone without any licenses like Suze Orman,Dave Ramsey or Jim Cramer can go on TV or radio and say anything they wish about securities and actually recommend them to people, and have absolutely no repercussions. I make recommendations to clients based on their specific situation and facts - not generalizations. I am already heavily regulated to make sure I am doing what is in the client's best interest. We don't need this fiduciary standard to protect the consumer. The necessary protections already exist.
Thank you for your time.