August 24, 2004
I am wrting to urge the SEC to withdraw the rule exempting broker-dealers from regulation under the Investment Advisors Act of 1940 when offering fee-based advisory services.
I am a twenty year veteran of the financical services industry. I hold the CFP, ChFC, and CLU desginations. I also have a variety of investment and insurance licenses including the NASD Series 7 and 24. During the course of my career, I have advised a broad range of clients on many financial matters through both fee-only advisory relationships, and under a commission only arrangement.
In my opinion, the rule exempting broker-dealers from the Investment Advisory Act of 1940 damages the interest of financial consumers. It also creates an unfair competative environment within the financial services industry. I strongly feel that all financial advisors should be held to the same levels of disclosure, training, and professional conduct when dealing with consumers. Additonally, I also strongly feel that if the fiduciary standard is applied to some financial advisors, then it should be applied to all advisors regardless of their licensing or employment status.
Steven M. Kersey, CFP, ChFC, CLU