January 15, 2005
The import of the SECs proposed rule runs counter to the practices of Broker/Dealers and their representatives. Knowing that the investment public desires comprehensive advice in seeking suitable investments, Broker/Dealers, on the supply side of the marketing equation, encourage their representatives to present themselves as planners. The SEC rule will create confusion--both for investment professionals and for investors. I believe there will be a great deal of winking at the client who wants full-bodied advice by the broker who seeks to evade the appearance of advising the client. The black market in financial planning will flourish.
The parsing of solely incidental requires the kind of mind that in the twelfth century enjoyed disputing the difference between transubstantiation and consubstantiation.