Schapiro's 'light touch' leaves scars

Even for advisors who avoided formal sanction, the regulatory environment has ‘em losing their hair. FINRA “interpretations” of their notices are anything but, and the vague, open-ended manner in which they’re written leave broker/dealer compliance departments twisting themselves in knots. My favorite anecdote was the advisor who organized a golf tournament for his clients. He wanted the name of his firm and his broker/dealer printed on the golf balls. Fine, the B/D said, if the proper disclaimer was included. As the advisor noted, it would have covered the entire ball in miniscule type and looked ridiculous. Didn’t matter; the broker/dealer ruled that if a golfer happened upon one of the lost balls in the woods (even years later) it would constitute an offer to sell. I’m sure you have many, many stories just like this. That said, I think it’s safe to say the paper’s fears are unfounded, especially given the market in which we now find ourselves.