Quote:
Originally Posted by Enoch Root
I think you missed my point.
The dealer doesn't add a layer of oversight. I'm not sure how you think you have 3 levels and we have 2. Investment Counsels have the exact same regulatory requirements and processes as a dealer firm like Manulife. (well, to be more precise, they are actually on different platforms and there are some differences, but they are too detailed for this conversation)
The point I was making is that, in the environment that you work under at Manulife - and at any dealer - advisors aren't as directly responsible for compliance and therefore manycan be less understanding of it and less concerned with it. The dealer takes care of it so out of site out of mind. Or it is looked upon as a burden that must be met.
At the ICPM level, that freedom doesn't exist. The practitioners are more directly responsible for their own compliance. That usually results in them being far more understanding of it, and engaged in it.
I am not suggesting that you don't take your compliance seriously. I am saying that it isn't the best platform for what the regulators are trying to achieve, and what we all want, which is a more evenly and appropriately regulated industry. And to have individual advisors more aware of, and more engaged in the regulatory requirements.
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I don't think I've missed your point. We just disagree. I think having a dealer providing stringent oversight does add a layer of regulatory compliance.
Quote:
Originally Posted by Cecil Terwilliger
Yes but you're missing the point that an unscrupulous advisor would much prefer to be in charge of his own oversight than have a dealer breathing down his neck.
It's actually funny the argument you are making because you are just making assumptions that the dealer removes all responsibility from the advisor. In my experience it is the opposite. Their oversight keeps advisors aware of the regulatory requirements. And you are also assuming that being in charge of their own compliance will just make every advisor more knowledgable of the regulations and follow them. Again, my experience is the opposite.
Either way a dishonest advisor is likely to find ways to skirt the rules. I just think it is easier when they don't have a dealer. My assumption is the dealer is doing their job, which may not always be the case.
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I think this pretty much nails it. I take compliance seriously and not just because I know I have a dealer watching me and regulators watching both of us.