August 6, 2010
I feel that my business is regulated enough. In the coarse of a year we have a fomal office compliance exam and monthy compliance meetings. I have had a State and FINRA audit every other year for the past 10 years with no negative findings. My assistant spends 10-16 hrs per month stay on top of compliance. With addition compliance requirements theis could add and additon 8-16 hrs per month. This would require the hiring of additional personel which at this time would cause get stress on our business. I feel that we do what is in the best interest of our clients and give them honest advise. We use complience approved tools in helping clients and formulating options for them.
If the SEC fiduciary duty changes this will cause us to change the avalabilty to interact with clients. I would have to move to fee based practice in which majority of our clients would not be happy with and very well could leave our pratice. We offer client option of non fee based and fee based planning. I feel the addition exposer will drive up cost of doing business significantly. The cost for EO insurance will increase additional staff for compliance licencing etc.
I will have to consider if this is a part of our pratice that we would no longer participate. It would be a great diservice to our current clients and future clients.