Investment advisers are squarely in the crosshairs of state and federal regulators, Brian S. Hamburger, JD, AIFA, CRCP, told workshop attendees at NAIFA's Annual Meeting and Career Conference, and with new regulations, even those that are well intentioned, come consequences.
"Intervention in a complex system always creates unanticipated and often undesireable consequences," Hanburger told the group. Among these consequences:
- Erosion of client privacy
- A slide back towards state regulatory oversight resulting in advisors having to comply with different regulatory regimes in different states.
- Increased costs associated with advisor examinations, costs that make it more difficult for advisors to business and make investment advice for expensive for clients.
- Regulatory inertia - in addition to standard of care, SEC is looking at harmonizing investment advisor and b-d rules on advertising, contracting with solicitors, resolving customer disputes, licensing, continuing education requirements, and record keeping.