August 24, 2010
To whom it may concern at the SEC,
As a broker, we are currently subject to suitability as a fiduciary standard. I have discussed the new proposed law, and they feel as I do that this new fiduciary standard is too much, over regulation and will drive up costs to provide advice. Customers are already adverse to legitimate fees necessary to cover our costs to conduct business. The standards and procedures we follow in accordance with the SEC and NAFIA are more then enough. Government is exceeding necessary regulation and the result in higher costs/fees. Customers are more interested on a return then another expense forced by yet again another layer of regulation. In the past 10 years, most clients have seen very little growth in their portfolios and if we have to have more fees, the same period would result in even lower account values.
The new regulation is overkill. The cry for additional regulation comes with a cost that most individuals/groups fail to consider when suggesting more regulation. The additional regulation is more serving of lawyers then customers. Who is behind the groups pushing for the regulation? Could national bar associations be involved, again? If as a country, we had 75% less attorneys we would all pay less for goods and services, it would be easier everybody to conduct business, and in opinion of everybody I know, better off. This is nothing more then another litigators windfall at the expense of investors, and brokers who adhere to the rules.
Thank you for considering my comments,
Mike Loftus