August 13, 2010
I take great pride in my career and tremendous satifaction out of helping folks save for retirement, start a college savings plan for their children, etc. I will also say that our business is one of the hardest professions there is. For a new Registered Rep. to enter our business, there chances of still being in the business 12-24 months later are very slim. This in large part because of the do-not-call law. Also, in addition, many people are using cell phones only, etc...it's extremely hard to market yourself and help folks if you can't contact them. If you don't already have a "book" of business established OR unable to buy another reps "book" of business, it's almost impossible to "survive". What does this mean? There will be fewer and fewer reps in our industry going forward...middle to low-income folks who can't afford to pay a fee-only planner will bypass finacial planning which will place more of a burden on the governement for their future financial security
Security standards currently governing broker-dealers and reistered representatives are already stringent and heavily enforced Current regulations already provide strong and appropriate consumer safeguards.
Requiring compliance with "fiduciary standards" will drive many advisers out of the market and eliminate a valuable advisory resource to consumers, especially in middle-and lower-income markets
ADDITIONAL risk of lawsuits involving registered reps. will INCREASE costs to consumers
Driving every reg. representative to a fee-only compensation will not necessarily result in better, unbiased advise for the consumer.
I've been in the business for 16-years. I've worked my hardest to build my practice and I've helped countless folks build retirement savings, educate their children, provide distribution options at retirement, etc. I currently have approx. 1,000 clients. I've never had one complaint. I can honestly say that I occassionaly think about "getting" out of the industry that I love so much because of constent threats that I've mentioned above.
PLEASE don't add additional stress, and add'l fiduciary duty's for registered reps. IF are business witnesses a sharp decline in the # of reg. reps. because of add'l regulations, who will then take-care of the consumer?? Thank You for your time.