July 30, 2010
I am currently Series 6,7,2465 licensed. I am required to do a half day computer compliance requirement every two years. Separately, my broker/dealer requires annual compliance meetings. In order to sell annuities there is a separate state continuing education requirement of 24 hours every 2 years. Additionally, my professional credentials reuire an equal amount of CE. Because we are an OSJ, we have a person in addition to myself work on our compliance requirements of reading representatives e-mail, set up, complete and review annual audits, each taking over a day to complete. This time distracts from meeting with clients to handle there questions and to do all the research necessary to provide appropriate recommendations.
The increased liability of acting as a fiduciary would likely mean that all clients would be required to pay a fee to cover the additional costs. They would also need to complete more paperwork to accomplish their desires. It is likely to increase the cost of our errors and ommissions coverage and would likely cause some to leave the profession.
Their is clearly a difficulty in determining what is best for an individual given their many desires that may change dramatically with time. Such changes can lead people to change their view as to what is best for them and could lead to needless litigation.
We have many regulations today. The enforcement of these regulations will do more to protect consumers than adding new more stringent rules that will drive up the cost of operation that will impact consumer costs, thereby lowering their ultimate results.