NAIFA members continue to submit comments to the SEC on whether broker-dealers and their registered representatives should be bound by a fiduciary duty. See our previous post for more information. The comment period runs through the end of August, and you can make your opinion known on the SEC web site. The SEC will consider the comments as it completes a study on the issue and decides whether to require a fiduciary standard for broker-dealers.
Below is a sampling of some of the outstanding arguments being made by NAIFA members against a universal fiduciary standard. Please click the author's name to read his or her complete comment. All of the comments received by the SEC are available online.
- Maximilian A. Ruszkowski believes "that a lot of ... veteran representatives would not be as successful as they are without doing the right thing for their clients. After all, a business owner that treats customers poorly is apt not to have any customers left.... Having an imposed Fiduciary duty only adds to the regulation, paperwork, and liability taken on by all broker-dealers in this industry."
- Suzette Moline writes, "Please consider that while it is unfortunate there are 'bad apples' in the barrel, most of us work hard to provide the very best of what we have to offer to our clients. Do not regulate the industry based on their actions vs. the majority who truly care about what they do and the clients they assist."
- Michelle A. Fuller writes, "Regulations equal more work and more work equals higher fees. This makes no sense to any of us who care about our clients. More red tape is not in the best interest of the clients - it's wrong, wrong, wrong."
- Kevin D. Lindblom writes, "Please understand that your help and concern in the area of protecting the American people is at the top of my list as well, but in my opinion the effect of fiduciary restraints would make the process for the client ... exponentially more difficult and costly."
- Barry Delp writes, "There are enough rules in place to punish the bad guys. Lift the burden that the new fiduciary standards would create for those that are trying to work in the industry. The added cost of more compliance and regulation means the client receives less at a time when they really need more."
- Bradley Schlafer writes, "If I was to move to a completely fee-only business, many of my clients would have to find someone else to help them plan for their retirement and other financial dreams. I would be forced to charge them a fee that they could not afford. Who is going to help the lower-middle-class people? The big, big firms already ignore them and Fiduciary regulation will force another group of Registered Representatives to ignore them as well."
Comments