August 25, 2010
I am writing today concerning your current consideration on adding additional regulation concerning "fiduciary responsibility" to financial brokers and advisors. Presently, the safeguards in place are quite adequate. My broker-dealer provides very stringent requirements when dealing with my clients. My small office is audited annually and any deficiencies MUST be corrected within a two week period. Additionally, all of my business is cleared through a compliance officer before placed in order for a trade. Much of the paperwork involved in any sales activity is compliance related. The supervisory commitment is already very high.
I feel that additional compliance to "fiduciary standards" will lead to poor service to my smaller clientele. Much more litigation, which is likely to happen, will drive up investment costs to the consumer. I will be forced to go to a fee based business which would be based upon assets under management, the smaller client usually paying more. Many advisors are already moving business in anticipation of this decision. I would rather not change my business to that type of format. Please... do not hurt the small investor they too deserve every right to be represented in the investment arena. Thank you.