August 8, 2010
I am opposed to the new SEC regulation regarding the 'new' Fiduciary Standard.
I find the language to be very vague, which leaves interpretation open to individuals, which would not be fair. For example, what is the 'best' product? Based on company financial strength, price, underwriting, historical performance?
Who would decide what is a 'best' practice? An employee of the government who has no experience in our field? Would they be properly registered and licensed? Would they be required to have a minimum number of years experience?
We are already heavily regulated and this additonal layer of supervision would put an unfair burden on the investment advisors, their supervisors and the companies. I can only imagine the ongoing lawsuits, the load it would put on the FINRA arbitration system, etc.
I am required to have an annual compliance meeting, ongoing compliance training, firm and industry, and continuing education. Why add another layer of government regulation?
There is no reason for the SEC to impose a misguided fiduciary standard on us and add another layer of supervision.
I would suggest you protect consumers by enforcing the exising rules, both FINRA and SEC, and ban the offenders, both companies and individuals from our industry.