March 30, 2005
As I understand them, the proposed regulations will require Broker-Dealers to create thousands of product specific disclosures which must be distributed in addition to approved literature and prospectuses. Instead of helping customers make educated decisions, the industry will be bombarding them with confusing paperwork. Our job is to help achieve financial goals and educate our clients. This legislation will simply confuse, alienate and scare clients and potential clients. Product manufacturers can easily comprise comprehensive summaries for clients to review. Overloading people with paper is no way to accomplish disclosure. The layperson will simply be pushed to say no to everything put before them because it will become impossible for them to make a decision.