It’s time to end ‘rulemaking by enforcement’
July 29, 2019 | Dale Brown | Investment News
For independent financial advisers and firms, regulatory requirements not only shape their conduct — they shape every element of their businesses. From strategic planning to pricing decisions to technology platforms, advisers and firms must be mindful of the regulatory implications of everything they do, in order to avoid unexpected compliance complications and unforeseen costs in both dollars and time.
When regulatory obligations are not clearly defined by transparent and consistent rules, therefore, it becomes difficult or impossible for firms and advisers to effectively operate their businesses and fulfill their mission of providing professional guidance to clients.
With this in mind, the Financial Services Institute was concerned about the Securities and Exchange Commission’s conduct of its recent share class selection disclosure initiative, which was launched in February 2018 and became an unfortunate example of “rulemaking by enforcement.”
