August 24, 2010
This is a its very least Bad Law. It limits restricts and does nothing what so ever to protect the consumer.
The current suitability standard governing broker-dealers and registered representatives is a robust and heavily enforced standard.
Compliance costs-both in terms of finances and time-are high, and those costs are eventually felt by clients. Adding another layer of regulation means another layer of compliance, and even more cost to clients.
the liabilities of a fiduciary duty could mean dramatic increase in costs and will severlt hamper our ability to serve our clients.
Will be forced to a fee only model to protect yourself from liability
question: will moving to a fee-only model result in better, unbiased advice?
will our clients afford to pay up front fees or will they be willing to?
The liabilities will drive up our errors and omissions coverage?