September 21, 2004
I believe the rule as stated is anti-competitive because it would create two standards of conduct for persons offering financial planning services: one for registered investment advisers and one under NASD suitability rules and anti-consumer, by permitting non-disclosure of conflicts of interest by registered representatives.
If brokers are going to offer advice, then then need to be certified or credentialed, just as registered investment advisers are. Offering securities on a transactional level does not make a person a financial advisor. When you are a financial sales person, you are not automatically qualified to provide comprehensive advice or financial planning. The standard to which you regulate brokers is not the same standard that Certified Financial Planners are held to. You need to WITHDRAW the SEC Broker-Dealer Rule Exemption Rule.