July 30, 2010
SEC,
I "...disagree that the fiduciary standard has protected consumers better. Basically, the fiduciary standard looks back and enforces breaches retroactively through SEC enforcement or private lawsuits. The suitability standard looks forward and tries to prevent harm to consumers through ongoing and frequent FINRA and broker-dealer audits and compliance processes."(NAIFA)
I am a licensed Registered Representative, an Investment Advisory Agent for my Broker/Dealer, an Insurance Agent licensed to practice in the areas of life, health, LTC variable products in a variety of States (e.g., WI, MN, IL, GA, NY and so on).
1.)I just returned from my Broker/Dealer's annual Compliance meeting, 2.)I must also earn 25 hours(every 2 years) of Continuing Education credits accepted by my own State Insurance Office and agreed-to by non-resident States. 3.)Additionally, I must perform ongoing LTC education in my State (4 hours annually plus 8 hours initially). 4.)I am supervised by a person in our local company office (daily), by our Compliance Officer in my State(periodic on site inspections and daily observance of e-mails and such)plus 5.)that of my Compliance Office @ my Broker/Dealer's State of Domain. 6.)I am also supervised by my State's Insurance Commissioner's Office and 7.)by the Commissioners of the States in which I hold non-resident licenses. 8.) I am also guided by the rules of NAIFA, 9.) the National/Local Associations for the Society of Financial Service Professionals as well as 10.) the Million Dollar Roundtable. Additionally 11.)I am guided by the ethics principles for Chartered Life Underwriters and all of these are reinforced by mandatory FINRA education and testing for compentency, every 3 years. These are some of the organizations and supervision I can think of off the top of my head and each of these have as a goal for their rules, ethics principles and continuing education, the protection of the clients I serve.
I must take good Fact Finders, understand well my Clients' financial affairs, help them understand and communicate well their Risk Profile, treat them and their business as
I would my own if I were in their position, stay in touch, periodically update my understanding of them and their affairs and-on-and-on...(phew).
Your proposal seems to me
1.) to be redundant,
2.) to add expense to the conduct of my business that in some way will find its way to the "expense table" of my Clients,
3.) to offer no additional client-protections than exist
in Law and Custom already, and
4.)to add layers of government and regulations that consume dollars that could otherwise be used more appropriately and in areas of greater need.
Thanks for your consideration of my input...
Tom
Registered Representative of my B/D
Investment Advisory Agent (IAR) for my B/D
Chartered Life Underwriter (CLU)
Chartered Financial Consultant (ChFC)
Life Qualifying Member of the Million Dollar Roundtable (MDRT)