Compliance Costs Escalating for Financial Advisors

Source: Accounting Today

CPAs in the financial services niche are seeing compliance and administrative costs  becoming more onerous. Also, mounting allegations of criminal and other infractions against broker/dealers are causing CPAs to consider moving their relationships to other broker/dealers. Because of increased requirements by the SEC, some broker/dealers are going overboard to assure compliance, thus increasing the administrative burden on their reps. Moreover, the heretofore less stringent rules for registered investment advisors, under which many CPAs work, are likely to become more demanding over the next few years.

Some observers believe the onus on financial advisors will abate. The regulatory environment seems to go through cycles, and this one may have peaked. Others are concerned that if the SEC doesn’t back off its current trend, paperwork will become an increasing portion of an advisor’s day.

From Accounting Today, April 4, 2005.  For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=11822&;pg=acctoday