For this issue of Market Conduct & Suitability, Senior Market Advisor editor Daniel D. Williams spoke with Christopher K. Abts of Cornerstone Retirement Group in Reno, Nev., to get his thoughts on compliance, suitability and senior protection issues. Following are the highlights.
Senior Market Advisor: What changes are you seeing in the industry (from a suitability and compliance standpoint)?
Abts: We have our own systems in place to determine if a certain product is suitable for a client that are far more detailed than the current suitability requirements in place in the industry today. So I believe the current suitability requirements are just the start, and while the paperwork requirements have clearly become more time consuming, I see this trend continuing.
SMA: What can you tell me about senior protection issues? How do you see that getting better?
Abts: Until advisors can learn to police themselves and weed out the bad apples, the industry will respond to senior protection issues by continuing to require more paperwork.
