January 17, 2005
I am writing in regards to your current attempt at developing rules for Broker Dealers engaged in financial planning.
I URGE YOU TO WITHDRAW YOUR PROPOSED RULE. DO NOT REVISE IT, BUT RATHER WITHDRAW IT COMPLETELY.
I fervently believe it is a mistake to create different rules for Brokerage firms than apply to Investment Advisors and Financial Planners. It is not possible to have two standards, two rules without public confusion over the entire issue.
I fervently believe it is possible for a Broker to use different publicly confusing terms to get around the proposed restriction regarding incidental brokerage. It is not possible to identify specific financial planning areas that are incidental to investing because nearly all financial advice involves the accumulation of assets which require investing. The conflict of interest should be obvious and the resulting public confusion over what financial planning is should also be obvious.
PLEASE WITHDRAW YOUR PROPOSED RULE COMPLETELY and keep the confusion out of the market place.
Jim Kirkland