The RIA Newsroom
What Our Advisors are Saying
“I remember vividly realizing I needed to make a change when I had a new client who had transferred over from a friend of mine. The prior advisor hadn’t had his eye on the business in the last year or so he was a broker. My new client owned some extremely poorly rated bond funds by that point—no matter which rating system you use—and I wanted to switch those out for a couple other much more reputable funds. When everything was said and done, I received an email from my IBD’s compliance department wondering how on earth I could have justified transferring from one bond fund to another. Rather than sending something back with some basic reasoning, I put together a 5-page email. In it I explained thoroughly my planning and review process, that if you took any time to look at things you would see the justification.
Don’t get me wrong—it wasn’t the compliance department at my IBD—it was the compliance environment everywhere. In my view, everything someone did to generate a commission, unless it was coming from cash, was questioned.”