August 24, 2010
This industry is heavly regulated, much more so than the legal industry. Additional regulation that could open up frivolous law suits and more compliance paperwork is counter productive for the consumer and the general public. I give you an example. When a client in a brokerage account passes away and has a payable on death clause in the contract, FINRA and the SEC requires a new contract to be established in the name of the estate, beneficiary, trust, ect. The beneficiaries due not want a new account and object to the process it takes to establish the new account in order to liquidate the account. With a bank account or mutual fund account all that is needed is a death certificate and letter of testementry from a probate court, trust document, benficiary statement ect., and a check is issued from the existing account. This example shows that the government places excessive burdens and costs on the public and the industry by forcing the creation of a new account that will soon be liquidated. Please due not add additional burdens on the industry and please eliminate the burden just mentioned. Over regulation can kill and industry and there is already a sound suitability system in place and it is not broken.
Your consideration of my comment concerning this matter will be appreciated.