The financial services reform bill that's now the law of the land contains many features that could impact financial advisors, but a new poll by SEI found the majority of advisors remain unclear about the bill and its potential impact on their business.
The poll of 144 advisors conducted this week by SEI, the Oaks, Pa.-based provider of turnkey asset management programs, found that nearly three-quarters of respondents are either "somewhat familiar" or "not familiar" with the impact of financial reform. Only 6% said they were "very familiar" with the reform package.
Additionally, 41% said they are "undecided and unsure" if the the reform bill will be good for the investment advisory space, and just 11% believe it provides investors with better protections and holds advisors more accountable.
Furthermore, 43% of advisors said they are undecided whether financial reform will substantially change their business operations, sales process, and client retention strategies. And 40% said they are undecided if it'll change how clients rely on their services.
"Given the volume and pace of information concerning regulatory reform, it is not surprising that financial advisors are not completely up to speed on the reform in its various stages," said Wayne Withrow, SEI's executive vice president and leader of the SEI Advisor Network. He adds that it's not due to a lack of interest as much as a lack of time for advisors who are trying to balance the needs of running a business with trying to keep abreast of changing regulations.
According to the survey, 57% of respondents felt that financial reform got too much attention from the government when there are more important matters to deal with. Just 13% said it should have been a greater priority.