Almost four in 10 financial advisors have been told by compliance officers they could not engage in an activity the advisor knew was both legal and within regulations.
That is the most troubling finding of a new study of 100 financial advisors by Katherine Vessenes of Vestment Advisors Inc. of Minneapolis.
The 2007 Financial Advisor Compliance and Legal Concerns Survey asked advisors around the country, representing 48 different broker/dealers, about compliance concerns, their views on the quality of their internal and external compliance departments, and how they would change compliance departments for the better.
The findings tell a scary tale about the state of compliance and how dealing with related issues can slow an advisor to a crawl.
Nearly 13 percent of respondents say they are losing at least one full day of production each week due to compliance issues and paperwork. That puts a sizable obstacle in front of your sales potential.