How the Financial Adviser Consider About Compliance
There is an entire compliance industry now that naturally suggests compliance is the answer to an adviser's business problems. The first issue with compliance is that at the international level it would appear that it has already gone too far and needs to be wound back. The truth is compliance internationally has begun to fit in at one of two extreme ends of the spectrum by depending on the local government and market regulators views on Interventionism. There are a few issues where advisers don't know how to tackle them.
Compliance is a non-issue completely or it is a barrier to doing business. There is already little middle ground where compliance approaches fall into one of the extremes. Hence, compliance is a submission, acquiescence, yielding and consent. But equally the same key word compliant means yielding, civil and obedient. So compliance is simply about obedience and it is an entry ticket to the business.
Obeying the minimum prescribed standards of the laws of the land is something that philosophically is a no brainer for professionals and well designed consumer protection law should not present significant hurdles for most professionals. Thus, it is about ensuring an acceptable minimum standard of behaviour and professional delivery is adhered to that protects consumers and ensures consistency of information and levels the playing field. Obviously, professionals have to be cognizant of the laws and ensure that all 100 tablets of local commandments are adhered to.
Compliance requirements should not be incredibly difficult for practitioners to work with or present barriers for consumers to engage professional advisers. In fact, it should not prevent the real work getting done of helping clients progress and achieve their financial goals. In the principles based regulated world it is basically business as usual for professionals. For those advisers for whom compliance merely obeying and meeting some minimum legal standards is a concern and the bad news is that for most consumers and regulators. Therefore, professional advisers don't care that is an issue for you.
At one extreme of the compliance spectrum in which regulation has been prescribed and evolved in some jurisdictions borders on the insane. Any regulation of a highly prescriptive nature that intervenes and distorts normal market behaviour is bad regulation. It has got principles based regime where objectives are set but it is open to interpretation as to how one achieves them. Indeed, that is not without its dangers for financial advisers of course but for most professional advisers in regulation was pretty much in business as usual.
In the heavily prescriptive regimes and consumers appear to be opting out of using advice of financial advice of financial products in increasing numbers. Thus, clearly they do not care for the compliance environment they have been delivered. Indeed, advisers are opting out too and product manufacturers are opting out or consolidating and nobody that produces or consumes financial services cares about compliance. Therefore, get stuck into it as early as possible and give to the full attention and effort it needs.
Compliance is a non-issue completely or it is a barrier to doing business. There is already little middle ground where compliance approaches fall into one of the extremes. Hence, compliance is a submission, acquiescence, yielding and consent. But equally the same key word compliant means yielding, civil and obedient. So compliance is simply about obedience and it is an entry ticket to the business.
Obeying the minimum prescribed standards of the laws of the land is something that philosophically is a no brainer for professionals and well designed consumer protection law should not present significant hurdles for most professionals. Thus, it is about ensuring an acceptable minimum standard of behaviour and professional delivery is adhered to that protects consumers and ensures consistency of information and levels the playing field. Obviously, professionals have to be cognizant of the laws and ensure that all 100 tablets of local commandments are adhered to.
Compliance requirements should not be incredibly difficult for practitioners to work with or present barriers for consumers to engage professional advisers. In fact, it should not prevent the real work getting done of helping clients progress and achieve their financial goals. In the principles based regulated world it is basically business as usual for professionals. For those advisers for whom compliance merely obeying and meeting some minimum legal standards is a concern and the bad news is that for most consumers and regulators. Therefore, professional advisers don't care that is an issue for you.
At one extreme of the compliance spectrum in which regulation has been prescribed and evolved in some jurisdictions borders on the insane. Any regulation of a highly prescriptive nature that intervenes and distorts normal market behaviour is bad regulation. It has got principles based regime where objectives are set but it is open to interpretation as to how one achieves them. Indeed, that is not without its dangers for financial advisers of course but for most professional advisers in regulation was pretty much in business as usual.
In the heavily prescriptive regimes and consumers appear to be opting out of using advice of financial advice of financial products in increasing numbers. Thus, clearly they do not care for the compliance environment they have been delivered. Indeed, advisers are opting out too and product manufacturers are opting out or consolidating and nobody that produces or consumes financial services cares about compliance. Therefore, get stuck into it as early as possible and give to the full attention and effort it needs.
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