August 25, 2010
While I am fortunate to serve some high net worth clients, the majority of my clients are 'mom and pops'. Many of my clients are not in FEE Based arrangement and do not have adequate assets for that model (min 100k). The suitability standards that my firm (as well as any other) is very thorough as it takes a couple of hours to complete the necessary ppwk to show that a product is suitable for a particular client. On top of that, we have quarterly compliance reviews, we have all correspondence to and from clients that are sent through the compliance department at the BrokerDealer. Everything we do is subject to review.
This law will cause a lot of planners to either charge more for their services and/or abandon 'smaller' clients. In my opinion, these are the folks that need help the most. While their are 'bad apples' on every field, I believe that my profession is exceptional in looking out for clients' best interest. I don't see how this law will benefit those we pledge to serve.
Sincerely,
Kenneth Carrico