August 24, 2010
While consumer protection is of the utmost importance, there is a limit as to how many requirements and guidelines you can impose on a registered represenatative to protect the consumer. There is a point to where the amount of disclosures and requirements ultimately confuses the client where as it becomews of no value to them.
I hold a series 7, Series 6, and am a Corporate Investment Advisor for the past 23 years.
In any profession you will find those who will find ways to skirt the law. General rules and guidelines are very important but they will never stop those who willingly wish to misrepresent an investment and/or do not act in the clients best interest.
The amount of exams, paperwork,computer entry and staff support required to keep in compliance is approaching 60% of our office time.
I ask along with my colleagues that you consider the amount of requirements that are placed on the registered representatives. Do they help meet the departments objective, or is the end result confusing and a disservice to the consumer?