August 23, 2004
Since 1968, my firm, Freedman Financial has served families and small business owners in Massachusetts through the delivery of compentent, ethical financial planning advice.
Our continued client base aligns with the significant continuing public interest in the misleading use of the current Broker Dealer Expemption. We recognize that the Financial Planning Association, The Consumer Federation of America and the AARP - are all opposed to the BD Exemption being held as a de-facto position - and further beleive that this rule be withdrawn immediately.
Brokerage Firms are laughing at this exemption as it gives them a back-door entry to clients - by highlighting Advice Concepts in advertising, phone scripts and print media - but downplaying the role of advice as incidental when given the opportunity to provide a disclaimer. Though the exemption was granted to reduce churning activity in brokerage accounts - I dont believe the SEC every considered the rampant negative churning that resulted from such a decision.
This rule not only misleads consumers - but impacts the ability for consumers to make wise financial decisions to help them acheive their lifes goals.
On behalf of my firm, my 325 client families - and the 125M of assets my firm currenltly manages - I STRONGLY ENCOURAGE YOU TO WITHDRAW THE RULE.
PLEASE HOLD ALL INDIVIDUALS THAT SUGGEST OR EVEN IMPLY THEY OFFER ANY LEVEL OF ADVISE ON PERSONAL FINANCES TO BE SUBJECT TO THE INVESTMENT ADVISORS ACT OF 1940
Marc S. Freedman CFPR