July 30, 2010
Thank you for opening this topic to discussion. As a series 7, 24, and 63 registered representative I can speak to the thought of adding additional regulations to the broker/dealers and registered reps of this country. With many years of experience I can say without a doubt, we are more regulated today than ever before. Heaping additional regulations on this already highly regulated industry would result in over kill. The 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. We have adaquate, and in some cases unenforced regulations, that if enforced would be suffient but instead we look to more rules, many of which will be overlooked anyway. Speaking for myself, I am closely supervised and examined on an annual basis so I find it redundant to pile more on this system.
I cringe at the thought of being held to a broadly defined fiduciary level of responsibility on every client that an advisor deals with, the enforcement of which would lead to run away liability risk. Not every client wishes to share enough personal information to allow a fiduciary relationship to exist but we both know that the client would never be the one held as respondsible when a question would arise, it would only be the advisor. The professional should not be held liable in those cases but again, baring this risk will generate undue cost and expenses that will further injure this industry and yes, even the economy.
Please reconsider adding additional burdens on this industry.