Don't Like Proposed Legislation To Govern Our Futures? Now's The Time To Start Talking About It

Wednesday, July 11, 2012 07:50
Don't Like Proposed Legislation To Govern Our Futures? Now's The Time To Start Talking About It

Tags: Advisor businesses | Congress | FINRA | regulation

Becoming vocal about your thoughts on making FINRA the next SRO can get people’s attention. Especially if you’re tweeting those thoughts at a rate of 1000 tweets per month. It’s certainly gotten some conversation going for Ron Rhoades. There’s no question our industry is undergoing a sea change. Rhoades is choosing to be proactive in managing that change.

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Rhoades feels that the days of broker-dealers are numbered and that independent RIAs are the advisors of the future. He opposes the Bachus-McCarthy bill, saying it will devastate small businesses and consumers if passed.
Even those in favor of the bill are joining in the conversation. And Rhoades is encouraging other advisors—even those at broker-dealers—to contact their representatives in Congress and make their feelings known.
The more participants in these types of conversations, the better legislation will be passed that truly benefits our clients and the industry in which we serve them. If we don’t like what’s going on, simply talking among ourselves is not going to change anything.
Being proactive can not only influence such legislation, it can help us define our futures in our own terms. Whether we choose to adapt our businesses to the new business model or not; whether we decide to have a voice in the tenets that govern us—we are the makers of our own paths. There's never before been a moment in time when building community around our ideas and truly influencing outcomes has been so easy to do.


Comments (2)

The truth is that we don't need new legislation. The Investment Advisers Act of 1940 provides all that is needed to oversee RIAs.

The problem is that the BD world is fighting tooth and nail to continue to be able to cloak themselves as "objective" advisors while still being allowed to sell overpriced crap.

All we really need to do is provide adequate funding to the SEC so that they can do the job that is their responsibility. If brokers want to be able to switch hats from fiduciary to suitability then they need much more oversight then single registrants (BD or RIA).

It would also help if we stop perpetuating the myth that government can't be competent which in this case serves only to give MORE power to BDs and their captured regulator FINRA.
bramsay , July 12, 2012
Then you have a lot to say and you should make your views heard...exactly the point of this post!
lisagray , July 12, 2012

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