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The Subtle ‘Tyranny’ of Regulatory Overlords

19:23 15 January in Articles Written by Jon Henschen

January 12, 2018

By Jon Henschen, Intellectual Takeout

Who really benefits from the 14,000 pages of Dodd-Frank?

If you’re a business owner, you quickly learn the pains of regulation and how it impacts your ability to survive and thrive. Author and theologian C.S. Lewis framed the topic best when he said,

“Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.”

This description aptly describes the actions of governmental bureaucrats who make up rules with the blessing of their own conscience,

DOL regulation translates into pay cut for some advisers

20:14 21 July in In the News

July 20, 2017

By Bruce Kelly, Investment News

The Department of Labor’s fiduciary rule has morphed into a pay cut for some advisers, who are left wondering whether a reduction in their compensation is being used to bolster the bottom lines of the broker-dealers with which they work.

Sure, it would be rather cynical to say that firms are taking advantage of the new fiduciary rule, meant to eliminate potential conflicts brokers face when recommending one product to clients rather than another. The rule is meant to do good for investors, so how could it be twisted to the detriment of advisers?

The brokerage business can be a cynical business. Just think of the dotcom bomb of 2000 and the credit crisis of 2008.


100% Advisory Payouts & 7 Other ‘Heresies’

17:26 29 June in Articles Written by Jon Henschen

June 28, 2017

By Jon Henschen, as published on ThinkAdvisor

Advisors take note: Many sacred cow profit centers being disrupted by broker-dealers promoting “loss leaders” to prospects

There is a mad scramble going on as new DOL rules erode once reliable sources of independent broker-dealer revenue. Shifting or creating new profit centers is becoming an obsession for broker-dealers.

For some, it’s a matter of survival. For others, such as private-equity owned broker-dealers, getting profits up to a level that will make the broker-dealer attractive for an aggressive sale price is the prime motivation.

New DOL rules are also causing broker-dealers to implement more conservative compliance policies that many advisors find too restrictive. For firms that buck the trend,