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Regulation and Compliance > Federal Regulation

Advisors weigh in on pending regulatory changes

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As advisors begin planning for 2011, one potential hurdle to cross is any new compliance demands that could cross their desk in the coming year. TD Ameritrade Inc. surveyed 400 advisors earlier this quarter to gauge their thoughts on industry regulations.

“As we head into the new year, advisors will be looking for clarity on regulatory issues impacting their businesses. The survey clearly shows these unanswered questions are cause for concern,” says Skip Schweiss, managing director, advisor advocacy and industry affairs, TD Ameritrade Institutional.

“Even though there is lingering uncertainty around regulatory changes, the independent business model is winning in the marketplace, adds Schweiss.”

Nearly 60 percent of the advisors surveyed say that what they worry most about “pending regulatory reform is that they may have to dedicate more time and money to meet any new compliance requirements. In addition, they have concerns about whether regulators truly understand the work advisors do on a daily basis.

Other findings:

* Nearly 70 percent of those surveyed agreed that they will have to add resources to manage the new regulatory requirements.

* Nearly 85 percent figure that they personally will need to dedicate more of their time to compliance issues, taking them away from managing their business and working with their clients.

* Nearly half of the advisors indicated that they know little to nothing about the impact that Dodd-Frank Act will have on their business.

* Among the surveyed advisors with at least some knowledge of the Dodd-Frank bill, nearly 75 percent said that they would rely on third parties, such as attorneys or other experts to help them manage their new compliance responsibilities. This points out the important role that education and outside resources will play for advisors.


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