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Tuesday, June 12, 2012|
Fund Democracy President Points Out Loopholes in Proposed Regulatory Bill
Fund Democracy founder Mercer Bullard has come down against Rep. Spencer Bachus' (R-Alabama) proposed creation of one or more SROs to oversee advisors.
The investor advocate told WealthManagement.com the bill was unfair because larger advisors wouldn't be as regulated as smaller ones.
"It would be like having a national park where the wealthy are allowed to use it for free, but only middle-income and lower-income persons are required to pay a fee," Mercer told the website.
Mercer said the reason for the inequality was that advisors with 90 percent of investments from large or institutional investors would be exempt.
He told WealthManagement.com the bill was attempting to regulate Bernie Madoff-type advisors, but that the Ponzi schemer would actually have been exempt under the rules.
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