August 31, 2010
Dodd Frank Bill
I am concerned that this bill needs to be more clearly written and that it is far too complicated to be effective.
Because it encompasses too much in one bill. It appears to me that it does not look at the details but instead puts an emphasis on rushing this bill through without considering the affects it will have on the smaller investor and those financial professionals who in good faith try to provide a valuable service to these clients.
If there is to be reform to our financial system, it needs to be done in small bites. NOT all at once. I cannot see the benefit here. It needs to be done in phases that clearly indicate that the remedy will far outweigh the repercussions of the changes implemented. If you take the ability and incentive of the broker/dealers to service their smaller clients in good faith,
Who will be left to serve and care for these clients?
I work in the financial service industry. I too am concerned as this gentlemen who wrote previously (see below)
There are many of us financial professionals who genuinely care and try to provide a valuable service to the smaller investor. Our economy is still in a fragile state. Many people are STILL out of work. This reform is written by people who HAVE jobs with pensions to look forward to. We are at your mercy to effect positive change slowly. Please be CAREFUL to consider the affects this regulation will have BEFORE it is put in place.
If this bill goes into effect as it is written, it appears to me that it will put even more people in the financial industry out of work. That could easily include me as a reg. Private client assistant.
Please respect that OVER REGULATING the American markets makes us a less attractive place because it adds a HUGE element of UNCERTAINTY and promotes "fear." Which can't be good. PLEASE DO NOT OVER REGULATE. Don't we want to keep our markets an attractive place to carry on business?
I hate to say this, but I hope that someone is not trying to put as many feathers in their cap as possible at our expense by "rushing" legislative change with the underlying intent to get simply to get re-electedů because, that would be with selfish. I hope that any changes made will truly be written in the spirit of helping to make our country strong and truly helps our families and future generations to prosper in good health.
Can we just please have some "FAITH" in the free market. I think our politicians are complicating matters by OVER WRITING THE RULE BOOK. Americans are strong in spirit but let's face itů we have been taking a beating by everyone.
Thank you for listening. I hope this email is helpful.
Roberta E. Mauch
File No. DF - Other Initiatives
From: George R Louderbough
August 8, 2010
I already live to a fiduciary standard even though I'm only a Series 6 broker. What bothers me most is discussion of 12b1 fees. Series 6 are not allowed to charge any ongoing fee, so we live on two sources When an A or B or C share is sold, we get a portion of that fee, and our Broker Dealer takes half of that. Then the "trailer commission" or the 12b1 fee (25 basis points)is the ONLY income we get after the sale, and the Broker Dealer takes half of that. If you take away or reduce the 12b1 you can have my license because there will be no more income for Series 6 brokers. I've been licensed for 22 yrs now, have approx 160 clients, two of which have investments slightly over 100k, the rest have account balances far lower than that. Guys like me support the vast majority of investors with day to day service and support. No other broker wants these people, in radio ads around here, the brokers qualify they want clients with 50k minimum. In fact, in 2005 the SEC had articles printed in the WSJ that stated the vast majority of investors would be served better by going to a Series 6 broker instead of a 7 who charges fees over and above the expense ratio printed in any local newspaper. The large broker houses quickly stopped that idea and soon the SEC was informing the public that they should go to the fee for service model so they would be better served. That idea is clearly wrong and hurts us Series 6 people who do not deserve it. For once, make decisions that favor the consumer and those of us who carry the water for the industry