Cetera Financial Group said Wednesday that it has launched the Cetera Risk-O-Meter, a resource designed to help advisors measure and navigate developing regulatory risks.
The Cetera Risk-O-Meter "combines data about enforcement actions and customer claims from regulatory bodies with insights on pending regulations to provide a clear and timely picture of the challenges financial advisors face today," the firm said in a statement.
"The rules governing our industry are becoming more complex and stringent every year," Mark Quinn, director of regulatory affairs at Cetera, said in a statement.
"At Cetera, we understand that financial advisors need to stay ahead of these changes to protect their clients and their businesses," Quinn said. The Cetera Risk-O-Meter "is designed to provide the insights and updates advisors need to remain compliant and confident in their practice."
Over the past three years, Quinn added, "there has been steady regulatory pressure, with new issues emerging while foundational topics like worker classification and fiduciary standards remain constant. As the regulatory environment continues to evolve, financial advisors must remain vigilant in their approach to compliance."
Key findings from the inaugural Risk-O-Meter include:
Regulatory Warming
Several key regulatory issues include enforcement of the Labor Department's Retirement Security Rule, which has been stayed by the courts. If upheld, the rule "will impose new and revised regulations that will reshape how advisors manage retirement accounts," Cetera said.
Also, the Federal Trade Commission "has adopted regulations restricting the use of non-compete clauses in employment agreements affecting workforce management strategies," the firm said.
