DALLAS - From fiduciary rules to state tax strategies, regulatory issues continue to be on the front burner for the industry, the CEO of Raymond James Financials Global Private Client Group told advisors Tuesday.
Chet Helck, who is also chairman of SIFMA, gave advisors a roundup of some of the key controversies that could affect the way they operate during a speech at Raymond James' annual national conference for professional development.
Among the top regulatory issues he said advisors should be watching:
UNIFORM FIDUCIARY STANDARD
Theres a great deal of confusion around attempts to redefine and apply the standard, Helck said -- pointing, by way of example, to the SECs 70-page request for feedback. He castigated the Department of Labor for trying to expand its fiduciary mandate beyond 401(k)s to include IRAs. The net result would be devastating, he argued. SIFMA is lobbying to have the Labor Department consult with the SEC for a consistent fiduciary standard across all kinds of accounts, Helck said. But the process will take a long time and we dont know how it will come out, he said.
STATE TAXES ON FINANCIAL SERVICES
Ohio and Minnesota have both seen recent attempts to tax financial services at the state level, Helck said. Such efforts have been unsuccessful to date, but if every state decided to tax financial services, Helck said, the complexity would create a nightmare scenario -- particularly for advisors with clients in multiple states.
Weve been fighting this one for 20 years, Helck said. The federal government has been trying to cut into independent contractors ability to deduct business expenses -- a move that would put increased financial pressure on Raymond James' independent advisors, he explained. Yet Helck said industry pushback had been successful so far, and that he was fairly comfortable that tax deductions for independent contractors would remain. This is not our biggest worry, he said.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access