Ready Or Not

Navigating the Department of Labor's new Fiduciary Rule

Across the retirement industry, wealth managers and product manufacturers have been hard at work over the past year adapting their businesses to comply with Department of Labor (DOL)’s new Conflict of Interest Rule (i.e. Fiduciary Rule) which begins to phase in April 2017 and will come into full effect on January 1, 2018.

Indeed, in our experience working with a range of wealth managers, broker dealers, 401(k) record keepers and administrators, independent marketing organizations, asset managers and insurers – no firm that services qualified retirement assets is unaffected by the Rule and most have invested heavily in their readiness efforts.

Suddenly, however, the situation may have changed with the recent election result. With Donald Trump and the Republican Party in control of the White House and both houses of Congress, there is uncertainty about the Rule’s future. Will the Rule implementation be delayed? Will the Rule be modified, or revoked altogether? Some firms are now questioning the merits of continuing to spend time and resources on Rule compliance, and are trying to decide whether a “wait and see” approach is more appropriate.

In this Point of View, we offer senior managers of the financial advisory industry (e.g. wealth managers, broker dealers, independent marketing organizations) tasked with DOL Rule readiness our perspectives on these questions. Given the principles-based nature of the Rule, there is no one-size-fits-all approach to implementation; however, we hope our views are useful as you chart a course forward under high uncertainty.

Ready or Not: Navigating The Department Of Labor's New Fiduciary Rule