How Long Until Financial Reform Kills Small Firms and Drives Big Firms to Hong Kong?

“This week, financial advisors have been informed of some new disclosure and reporting rules. As expected, the impact of the Dodd/Frank Bill is already foreshadowing a ridiculous amount of additional paperwork – mostly silly work as one of my colleagues would call it. Financial regulation is a double-edged sword and changes were necessary, no arguments there. However, it is questionable to what extent investors will be better off, safer, and whether the financial system will any more stable after implementing the new financial overhaul bill.

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So what’s it going to be after the dust settles and this monstrosity of an overhaul will eventually be implemented? My take is that investors and the general public will have to foot the bill in one form or another. Clients will lose out in having to pay higher fees. Smaller firms, such as our tiny practice, will find it increasingly difficult to swallow the cost of dealing with regulators and may be forced to team up with a larger firm, losing some of their coveted independence.” Read more.

How Long Until Financial Reform Kills Small Firms and Drives Big Firms to Hong Kong?
Clemens Kownatzki
Business Insider, September 4, 2010.

Image by Salvatore Vuono / FreeDigtalPhotos.net.