Compliance costing financial advisers time, money

Filed under: Banking & Finance,Daily News |

Nearly 13 percent of registered financial advisers are losing at least a day of production each week because of compliance issues and paperwork.

The 2007 Financial Advisor Compliance and Legal Concerns study conducted by Vestment Advisors Inc. of Minneapolis revealed that 39 percent of respondents are concerned about the amount of paperwork that must be completed to meet compliance standards.

Only 7 percent of respondents said they are worried about the use of variable annuities. “If they are dealing with compliance they are not meeting with a client — which means it is going to eat into production, sales and bottom line,” said survey author Katherine Vessenes.

She said some advisers have indicated they have been told by compliance officers they cannot engage in an activity the adviser knows is legal and within regulations.

The survey asked 100 advisers at 48 broker-dealers around the country a series of questions about compliance, their view about the quality of their internal and external compliance departments, and how they would change the compliance departments for the better.