Amid blaring of bagpipes, advisers urged to fight SRO

Amid blaring of bagpipes, advisers urged to fight SRO
Exhorted to contact legislators to voice opposition to Bachus bill; 'have your mother … write too'
JUL 10, 2012
It was fitting that NAPFA's annual conference in Chicago opened Tuesday to the sound of bagpipes, because the 500 or so advisers attending are eager to take on some big battles. Adviser Scott McLeod of Brown McLeod Inc. did the honors in full Scottish regalia, kilt and all, playing “Amazing Grace” and “Scotland the Brave.” Opening speaker Susan John of Financial Focus Inc. gave an update on proposed legislation that fee-only advisers under supervision of a self-regulatory organization, which she urged the audience to fight. Ms. John was referring to legislation introduced in the House last month by Rep. Spencer Bachus, R-Ala., that would place fiduciary advisers under the supervision of a self-regulatory organization, most likely the Financial Industry Regulatory Authority Inc., which currently oversees broker-dealers. “We must stop them so we won't have a watered-down fiduciary standard,” she said. “Write your congressperson — and have your mother, your children, your clients write, too.” Attendance at the annual conference for fee-only financial advisers was much higher than in the past several years, according to NAPFA. Sessions focused on marketing, investments and tax planning, and all were well-attended, with few advisers sitting out the activities. Keynote speaker Ted C. Fishman, author of “Shock of Gray” (Scribner, 2010), which examines the aging of America, urged advisers to gear up to help a generation of Americans who are poorly prepared for retirement. The biggest financial fear of Americans is running out of money while they are still living, and advisers have a big job to do to persuade investors to get educated. “There are things we are hardwired not to think about — aging in general, the ending chapter of our life, retirement security,” Mr. Fishman said. “NAPFA members are not like typical financial advisers,” he said. “What you do with the fee-only model is exactly what a demographically changing world needs.”

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