A poll by SEI Advisor Network released Thursday finds that many advisors believe recently enacted and proposed reforms will demand as up to 10 hours of their time each month.
The Dodd-Frank reforms, proposed changes to 12(b)1 fees and advisor disclosure forms are expected to require from three to 10 hours of work a month, according to 44% of advisors surveyed. And 33% believe the reforms will take one to three hours a month.
When asked which reforms, either proposed or made into law, would most impact their business, nearly 40% of advisors said the Dodd-Frank changes, and 30% said possible changes to 12(b)1 fees.
The vast majority, 76%, do not believe they need to change from federal to state registration. And 75% say they are not planning to move C shares or funds with high 12(b)1 fees into fee-based accounts.
SEI Advisor Network interviewed 100 advisors in early September about financial reform. The group is part of SEI, a outsourcing partner for advisors and organizations looking for asset-management, back-office and other turnkey services.
In late July, SEI found that a majority of financial advisors were unfamiliar with many of the details surrounding financial reform and its potential impact on their business and clients.
“Given the volume and pace of information concerning regulatory reform, it is not surprising that financial advisors are not completely up to speed on the reform in its various stages,” said Wayne Withrow, SEI executive vice president and leader of the SEI Advisor Network in a statement. “It’s our observation that this isn’t due to a lack of interest, but rather a lack of time.”