August 2, 2010
The suitability standard governing broker-dealers and registered representatives is a very good and definitely enforced standard. Compliance costs are high as it currently is and by adding more levels of regulation means more cost to consumers I currently have a series 6, series 63, have to go through a full day of compliance training annually, testing annually, on-line security awareness annually, and compliance visits from a compliance officer annually. This is what I currently have to to do comply with my licenses As you can look at my record, I have NO COMPLIANCE problems. How often are you examined? The amount of time myself and office personnel spend on this is obnoxious already. This has an effect on how we serve existing clients because of how much time is spent already in regards to compliance. This will probably move us to a fee-only model to protect us from liability. Most people can't afford and won't be willing to pay on this type of model. This has a domino effect that will impact all businesses that need the investment capital that is derived from our business. Also, this will drive a lot of good people who don't have a scratch on their record out of business...not a good thing.