Financial advisors face a slew of new regulatory issues in 2018, and when it comes to compliance, they’re “better off changing the oil regularly than waiting for the engine to blow up.”
That vivid warning comes from Todd Cipperman, founder of a consulting firm specializing in regulatory compliance. His company, Cipperman Compliance Services, together with the Kreisher Miller law firm hosted a forum outside Philadelphia in early December on industry trends.
The top takeaway? Advisors should pay attention as regulators increasingly focus on personal liability, rather than just pursuing cases against firms.
President Trump’s administration delayed the enforcement provisions of the fiduciary rule
until mid-2018, and the President and top officials have made deregulation of several industries
a top priority. Their actions do not, however, clear advisors of individual responsibility for a series of current and shifting obligations, Cipperman says.
Wealth management firms should spend no less than 5% of their revenue on compliance, Cipperman and his team often tell clients. Regulatory oversight has steadily increased since the financial crisis and the Great Recession, and advisors should only expect the supervision to grow next year.
Follow the links for Cipperman’s take on the top FINRA and SEC examination priorities
this year or a budgetary analysis
of the SEC. To find out what to expect next year according to Cipperman, as well as Bao Nguyen of Kaufman Rossin’s risk advisory services practice, please click through our slideshow.