Surely, it should not be the current patchwork regulatory scheme that gives some financial institutions unfair and irrational competitive advantages over other financial institutions, and that permits many financial activities to be conducted outside of the supervision of the appropriate functional regulator. SIA believes these combined entities should be regulated under a system similar to that proposed in H.R. 10 in order to enhance the competitiveness of all financial services firms and functionally regulate their financial activities. The U.S. securities industry is perhaps as competitive as any industry in the world. It is in part a result of that competition including the ability to affiliate with entities other than banks that the U.S. capital markets are the world's largest and most liquid. In the securities markets, one need only look at the vast choices in products, services, providers, and methods of compensation to see how competition has greatly benefited investors.
Consumers can invest in stocks, bonds, and thousands of mutual funds.
They can choose a full-service provider or a financial planner to receive advice on managing their assets. More independent and knowledgeable investors can use a discount firm to execute their transactions. Or they can make their trades electronically over the Internet for a fraction of the cost of just a few years ago. Investors can choose to compensate their broker in a traditional commission arrangement, a flat-fee basis, or as a percentage of assets under management. These changes greatly benefit investors and are the direct result of a highly diverse, competitive industry that is willing and able to invest the capital needed to meet the demands of its customers.