In recent weeks, regulators have sharpened their focus on the fees and commissions investors pay—starting with small-dollar transactions. This review, first reported in CityWire RIA by Sam Bojarski, has already led to enforcement actions against several of the largest names in wealth management, including Charles Schwab, Edward Jones, and LPL Financial.

What makes this investigation especially noteworthy for us is that it originated right here in Alabama. Amanda Senn, Director of the Alabama Securities Commission, has taken a leading role in bringing national attention to practices that may put investors at a disadvantage.

Why This Matters for Investors

While the investigation is ongoing and more firms are likely to come under review, one thing is already clear: regulators are sending a strong message about transparency and fairness. Even small, seemingly routine transactions can add up—and clients deserve to know exactly how much they are paying, and why.

At our firm, we are not impacted by this wave of enforcement. We operate as a fee-only RIA and do not earn commissions. That distinction matters because it means our incentives are fully aligned with those of our clients.

The Importance of Reading the ADV and CRS

These regulatory actions also highlight the importance of doing your homework when choosing a financial advisor. Two key documents every investor should review are:

• Form ADV: This filing outlines a firm’s business practices, fees, and potential conflicts of interest.

• Form CRS (Client Relationship Summary): A shorter, plain-language document designed to help clients understand how a firm is compensated and how it manages conflicts.

Taking the time to read these documents can help you ask better questions, compare firms more effectively, and avoid surprises down the road.

Looking Ahead

The investigation is far from over, and the list of firms under scrutiny will likely grow. For clients, that makes this the perfect time to revisit your advisory relationship, review your firm’s disclosures, and ensure that your advisor’s compensation model is aligned with your goals.

For us, this development reaffirms the value of the fee-only RIA model and our commitment to transparency. We welcome the increased regulatory attention because it raises the bar across the industry—and that’s good for investors everywhere.

Mike

About the Author:

Mike Mickels is the President and Chief Compliance Officer of CochranMickels Retirement Specialists, LLC, and an avid sporting clay competitor. Our firm provides personalized planning and investment services to individuals approaching and in retirement. Disclaimer: This content is intended solely for informational purposes. CochranMickels Retirement Specialists, LLC and its representatives are only authorized to offer advisory services where properly licensed or exempt from licensure. Investing carries risks, including potential loss of principal capital. Our firm does not endorse external links, nor is it responsible for third-party content