July 2, 2009
At this point the RIA’s and IAR’s are so regulated that we spend a ridiculous amount of time filling out forms. We are already subject to audits from FINRA, the state of residence, and our firm. They all review the same subjects. Do we really need another audit on the same subjects? In addition to the above mentioned audits I am subject to the FPA since I am a CFP.
Suitability is the same for everyone. It would make a lot of sense if we only had ONE group to comply with. Each insurance company, security company and my B/D has forms to be filled in, and each one on the same subjects. The cost of doing business is so substantial that it is no wonder that some people break the rules to make money. It is important that everyone who is in this business be a fiduciary, but it is also important that you get together with everyone else and have only one governing body.
Ralph Feith, CFP® professional