I'll try to shed some light on the original topic.
As some may know I work as a PM for an advisory firm in Chicago.
1. You MUST have liability insurance. It should at least cover the average size account you are working with. I'm a PM and not an asset gatherer, RM, or broker and my premium that the firm pays for me is $5,000 per year. This is not out of the ordinary
2. In may states if you hold yourself out to the public as a "financial Advisor" you must be registered as an investment advisor and submit to audits and reviews at any time. It is not unusual for the inspectors to barge right into your office unannouced and ask to see your books. records, and client files.
3. As you have probably noticed, most of the really successful brokers or planners aren't the most financially astute. This is because the things that make you a good investor ARE NOT the same skills that help you gather new clients. That's why I'm thankful that our firm is large enough to have a PM staff that does all of this work leaving the relationship work to the planners. You might be the smartest planner there is, but 9/10 of people will go with the guy who belongs to their country club (church, rotary, etc) because "He seems so trustworthy!"
It's a rough business, but I guess every business is.