April 4, 2005
Comments: For S7-06-04
The majority or broker/dealers and representives are forthright with their customers and have their customers best interests in mind. This legislation will have unintended consequences of burdening both smaller and independent broker/dealers as well as the large wirehouses with additional documentation. As it stands now, our compliance documentation takes an enormous amount of resources. It is driving up the costs of doing business, staying in business, and attracting the best and the brightest into the business. My broker dealer...as with all broker dealers, are passing the increased costs directly onto the individual broker/rep. Ive always had a nice business, but the costs of doing business have gotten so expensive that I have gone into a non-sales, administrative assistant position. I still have all my licenses and do my extensive continuing education to keep my licenses current. However, I am unable to make or suggest any sales ideas or participate in any commission. Im not sure how long I will continue to stay in this business as long as my costs continue to go up. Im a small example of a larger wave to come. Im lucky in that I was able to stay in the business that I love so much...at a greatly reduced income and added expenses for my licensing and continuing education. However, many will decide not to start and many will quit the business entirely. Brokers are going to end up like obstetricians, priced out of business...and few and far between to service the public. Thank you, I understand the good intent of this proposed rule, however, law makers may be totally unaware to these unintended consequences.