Next NAPFA boss calls Finra 'colossal failure,' B-Ds 'dinosaurs'

JUL 23, 2012
Ron Rhoades isn't happy with the status quo. Since Mr. Rhoades, chairman of the personal-financial-planning program at Alfred (N.Y.) State College, was elected the next chairman of the National Association of Personal Financial Advisors on May 1, he has been perhaps the most vocal advocate of fee-only financial planners. Through his Twitter account, he has taken direct aim at the Financial Industry Regulatory Authority Inc.

TWEET ASSAULT

On June 22, he tweeted: “73 years after its creation, the only rational conclusion is that Finra is a colossal failure and should be dismantled.” The next day, he tweeted: “Beautiful weather in DC today does not obscure the devastation to small businesses and consumers which would occur if Finra oversees RIAs.” Finra spokeswoman Michelle Ong declined to comment. Broker-dealers, and more specifically their commission-based business models, have come under tweet assault by Mr. Rhoades, as well. “I say it's far past time for the extinction event — long in the works — to occur. B-Ds are dinosaurs. RIAs are 21st century professionals,” he tweeted June 23. “I've had some success of influencing the public-policy debate over the last several years or so because I'm vocal, I know how to do research, and I'm not afraid to set forth my views and principles, and stand up and say: "Hey, this is what we should be heading toward,'” Mr. Rhoades said in an interview. It isn't all criticism, though. Mr. Rhoades also focuses on helping other financial advisers to be proactive themselves by giving tips on how to contact their local House member to protest the Bachus bill, for example. “It's a good outlet for communicating thoughts and resources,” he said. “I have lots of thoughts that come to mind throughout the day, and Twitter lets me put them down real quick,” he said. So far, Mr. Rhoades is averaging 1,000 tweets a month. To date, the feedback he has gotten has been mostly positive, even from Twitter followers with ties to Finra and who are broker-dealers. “There hasn't been much disagreement,” Mr. Rhoades said.

"ROBUST CONVERSATIONS'

Melissa Joy, principal at Center for Financial Planning Inc. and a Twitter follower of his, might not agree with everything that Mr. Rhoades tweets. But the fact that someone is out there saying these things is a good thing, as far as she is concerned. “It's a wonderful opportunity to have robust conversations about the future of the industry,” Ms. Joy said. Mr. Rhoades intends to keep tweeting the good fight after he assumes his new role as NAPFA chairman Sept. 1. “The rhetoric might get toned down a bit, but the core messages won't change,” he said. [email protected] Twitter: @jasonkephart

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