Tony Vidler writes this article explaining that advisers are often so fearful of compliance that they are losing clients due to the documents they are presenting them with.
There are layers to this problem:
- The client you do not approach because you are worried about the compliance burden
- The service you do not offer because you are worried about compliance processes
- The client you lose because your compliance documents are so complex
- The client you lose because even though your documentation is great your process around presenting the compliance process is filled with resentment, annoyance, and un-needed complexity
The short answer is, yes, advisers are losing clients. The long answer on how to avoid that is the hard process engineering work to develop a compliant process that is simple and easy to use, and easy to sell too.