The launch of a new trade association for those who advise high-net-worth clients was announced in Washington, D.C. last Wednesday. While centered on advisors to the affluent, the new ingredient that the Wealth Adviser Institute will add is that it will be multi-disciplinary ­ accountants, attorneys, trust officers, insurance agents and other professionals who serve the needs of wealthy clients are welcome to join. The founders of this project calculate that more than 600,000 individuals are potential members and hope to attract one tenth of that number.

"Our mission is to become the American Medical Association of the financial services industry," said Drew McCoy, chairman of WAI's Adviser Council. Both education and advocacy would be on the new group's agenda. Asked about the organization's financing, WAI officials said they have received backing from two firms, Dunham & Associates and Business Transactions ­ which is the firm of WAI PresidentDavid Grau ­ with more firms lining up. A membership fee of $300 a year would finance future activities once WAI is up and running.

What the Institute will try to prevent happening to advisors generally, said McCoy, is anything like the regulatory reaction after mutual fund scandals were discovered in 2003. He described that as "a huge wave of regulation cascading down upon advisors" with "a whole new ton of paper to oversee." The new lobby would seek to provide advisors with a voice to say to regulators, "apply [regulation]where it's effective -- not where it is most visible," he said.