July 30, 2010
I have worked in the securities industry since 1998. Prior that I was a practicing attorney for 6 years. I used to think the practice of law was paperwork overload but I have to admit the securities industry has it beat. I am requesting that you consider the amount of regulation that already exists in our industry and delcare that enough is enough. Even though because of my designations I am already held to a higher standard I do not think applying a fiduciary standard to an individual who acts as a registered represetative of a broker dealer is warranted or wise. This regulation will do nothing to protect investors and I beleive it only benefits the large wall street firms and the expense of the small independent representatives who do their best every day to help out mainstreet. The amount of paperwork that a client has to sign in order to do business with me is just absurd.
Their is risk investing in stocks, their is risk investing in bonds, and frankly their is risk investing in CDs. The public when it comes to investing has to have some personal responsibility. When a client signs all the forms that are currently required by FINRA, SEC, and my broker dealer it is disclosed several times that an individual could lose money if they invest. Then if they do lose money do to some market related event, the client still has the right to file a suit claiming unsuitable investments.
The current regulations are more than enough to protect the public. You can't regulate bad charracter or bad morals. If someone wants to commit fraud, no law on the books will correct that part of human nature. The SEC was well aware of Mr. Maddoff's process yet did nothing to protect his clients. None of the proposed new regulations will change the fact that all that needs to happen is enforce the current regulations that are on the books.