July 27, 2009
Someone please "wake up" We don't need more regulation, we need better enforcement of legislation and regulations that are already in place. By making the 99.9% of advisors, who act in the best interest of their clients. without ill intent, incur addition fees and spend time during audits only takes away from the service we are trying to provide. By increasing the cost to do business, it means less money for employees, who take care of all client needs.
Increasing or imposing fines, when they are levied are a perfect deterrent to wrongdoing. We all enjoy the prospect of the revenue stream we have created and don't want to damage that stream or our reputation. The word of fines spreads like wildfire among advisors and public disclosure of wrong doing is the kiss of death in our competitive world. That alone keeps the honest people honest, it is like a lock on a door. The thieves and dishonest people will always find ways to "break in" or cheat people. They probably wouldn't even bother to become registered and thus avoid the current regulations anyway. Your new rule is only preaching to the choir.
Enron, WorldCom, Delphi, Global Crossings all had auditors too. It didn't solve the problem. What is next an audit to verify the auditors capabilities?