SOURCE: ByAllAccounts

ByAllAccounts

September 15, 2010 09:00 ET

Financial Advisors Not Bullish About Dodd-Frank and Other Wall Street Regulations

ByAllAccounts RIA Survey Shows Continued Confusion and Lingering Doubt

BOSTON, MA--(Marketwire - September 15, 2010) -  ByAllAccounts, Inc., the financial advisors' choice for account aggregation, today announced results of its survey of financial advisors that reveals continued confusion and lingering doubt about Dodd-Frank and other recent regulations designed to protect investors in the post-Madoff era. Those advisors opposed to Dodd-Frank (51 percent) well outnumbered those in favor (21 percent). Equally telling is that nearly one in five advisors is unfamiliar with Dodd-Frank and 22 percent remain "confused" with rule 206(4)-2, known as the "custody rule," recently enacted by the Securities and Exchange Commission.

"The responses we collected for this survey make it clear that advisors aren't sure that clients are being better served by onerous new regulations," said Cynthia Stephens, ByAllAccounts' Director of Marketing. "A consequence of the new regulations seems to be increased burden on advisors, many of whom are still confused about how to comply and how it will help clients in the long run."

While many of the costs of regulatory compliance are difficult to quantify, one third of the advisors in the ByAllAccounts survey said the mandatory audit, one of most talked-about requirements of the rule 206(4)-2, cost their firm in excess of $20,000. Of those that have already completed an audit, 51 percent said it took more than five days.

"New regulations and industry uncertainty are changing how financial advisors serve clients," continued Stephens. "Out of this uncertainty, however, true wealth advisors are rising to the top. They are among the 21 percent that currently have custody of their clients' held-away assets -- including the burdens that come with it -- because they're determined to provide the most holistic advice possible and, by doing so, grow their own businesses as well."

ByAllAccounts will present survey results and methodology during a webinar today at 2 PM EDT; please visit: www.byallaccounts.com. Barry Schwartz, founding partner at ACA Compliance Group will summarize the Dodd-Frank Act and its implications for financial advisors.

About ByAllAccounts, Inc.
ByAllAccounts, the financial advisors' choice for account aggregation since 1999, is the only service that retrieves, enriches and consolidates reconciliation-ready account data from any custodian. ByAllAccounts' patented aggregation engine, through which more than $170 billion in assets flows, aggregates all client account data -- from any source -- within an advisor's wealth management platform or trust accounting system for a truly comprehensive view. Thousands of advisors rely on ByAllAccounts to save administrative time and costs, mitigate risk associated with having incomplete information and grow revenues through client referrals and new business development. ByAllAccounts integrates seamlessly with all of the most popular wealth management platforms. For more information, visit www.byallaccounts.com.

Contact Information

  • Scott Bauman
    Greenough Communications
    617.275.6518
    Email Contact

    Cynthia Stephens
    ByAllAccounts
    781 376 0801 x 130
    Email Contact