I think we will need to be more careful with the amount of time we ask
the trainees who are paid salaries to work, but as for the regular
reps…thinks won’t change.

[quote=double trouble]

If the "Merrill Lynch Rule' goes into effect, what does it mean for the typical commission/wirehouse broker?

Will companies just add the disclaimer & continue business as usual or do you anticipate a major change in the way the wirehouses's do business?

DT

[/quote]

Do you mean the "Merrill Lynch rule" that allowed brokers to use titles like "financial advisor", that the SEC just reviewed, or the results of the California over-time ruling?

Good question…I actually put a long post in this forum down below about this very topic…

Mike,

You are correct. It has to do with the lawsuit by the Financial Planning Assoc against the SEC. I have heard that there will be some new kind of disclosure, yet to be written, that will go inforce this year or perhaps early next year.

The disclosure will be something like...Do not reply on the advice you received in making this decision, it may not be in your best interest.

The basic assumption is that a Registered Investment Advisor has the moral high ground because he is acting as a Fiduciary. While everyone is doing what is "appropriate".

I hope someone can tell me if they think this type of disclosure will be required on confirms by commissioned Reps.

DT

If any disclosure is required, I would think it would be on the new
account forms.  My own personal opinion is that they won’t require
more disclosure in this area.  The financial planning community is
up in arms that brokers are going to be offering more and more services
that appear to be the same as theirs.



My own firm is in transition towards the RIA model though.  The
B/D model is just getting more and more difficult to justify when
selling to the general public.

Beagle,

You are right about the B/D model. I hear EDj is looking at making all IR's get their series 65.

I have a client who is a P&C agent. His company made him get his series 65 so he can refer business & collect a fee.

As usual, EDj will be the last one to make the change.

DT