I recently spoke to some higher ups at a major brokerage firm concerning the proposed Department of Labor fiduciary rule.
Surprisingly, we were on the same page. Most of them were in favor of some sort of fiduciary rule that would put retirement plan advisors on some fiduciary setting. We also had concerns on how the fiduciary rule would apply to individual retirement accounts (IRA) because unlike retirement plans, there maybe less of a market from advisors to choose for the retiree that had less than $100,000 in IRA assets.
They were preparing to prepare for some sort of fiduciary rule, they think it’s inevitable. I agree. Whether you are a broker or a registered investment advisor, you have to get ready for some sort of fiduciary rule. Nothing is set to stone, but after the last debacle of trying to introduce a fiduciary rule, I’m convinced something will finally be implemented. I don’t expect the rule to be the same as the one proposed because I think there is enough congressional pressure that will be applied to get some concessions.
While a broker maybe concerned with the changes, but I think this fiduciary rule change is an opportunity for everyone including brokers because someone else’s problem can be your opportunity.