August 9, 2010
It appears to me that you are about to impose standards and rules on me as a registered representative that Solomon could not understand. What does the word "best" mean? Even a former president had difficulty with the word "is"
If the SEC is going to formulate new rules and regulations, they should be very specific and well defined. Nothing should be left to interpretation and second guessing. I cannot afford to operate my business in an ill defined environment where I am always subject to an attorney looking over my shoulder and suing me because I should have done something different many years after the fact based on someone's opinion of best. I will quit first and the result of this decision is that present and future clients will get less common sense advice about retirement planning and the governmnent will get much less tax revenue from me. The SEC should be about fostering a win-win environment for clients and Registered Representatives, not some business situation that makes life difficult and impossible and results in clients saving less money for their retirement years because nobody could afford to serve or help them.
I just took an application for a $5000 ROTH IRA in which I will probably earn $200, BEFORE EXPENSES, over the next year. Current suitability and compliance requirements alone took approximately 20 - 25 minutes of my time. Don't make this worse. I will not be able to afford to remain in business.
I have been a life and health insurance agent for almost 40 years and a registered representative for over 30 years. I operate my business as a sole proprietor. During all this time I have never had a complaint filed against me by a client or even the slightest hint of a complaint. I follow all the rules pertaining to suitability for my clients and whatever compliance requirements that come from my Broker Dealer. I follow the rules.