Compliance people running scared
Our compliance team has the correct approach – they often say “no” at the first pass, then follow it up with, “Now, let’s see how we can make it work.” Of course, this is at the internal advisory level in our RIA, not in the B/D, where everything is assumed to be “no.”
My personal opinion is that compliance people are running scared from overzealous and overly power-hungry regulators who threaten them with rule interpretations and changes that force them to turn everything down. It is time the regulators were held to an accountable standard, rather than being insulated from any repercussions personally for some of their ridiculous edicts.
- Name withheld by request
Time to give up license
I have been Series 7 licensed since 1993 and I think I am giving up my license today because of the issues brought up in your latest article. Thank you for writing on this subject matter.
- John T. LaSota
LaSota Investments Inc.
The death of the independent rep and free enterprise
Thanks for taking up the torch on the aggressive compliance issue. I’d like to call my comments the death of the independent rep and free enterprise. Several years ago, when lawsuits following mutual funds, variable annuities and now equity indexed annuities, compliance got super-aggressive. I had to change broker/dealers because the B/D wanted to check all my bank accounts!
Lawyers are the first problem, encouraging and abetting frivolous, unfounded suits, including class action suits. I have been in business for 30 years and have yet to see a meaningful settlement for the clients – although I have seen large fees paid out to law firms. Secondly, financial