Practice Management

Most Advisers Handling Implementation of Fiduciary Rule Well

Some firms also report handling certain rule preparations or implementation activities poorly in some ways and well in other ways.

By Rebecca Moore editors@strategic-i.com | July 05, 2017

Avid public debate continues regarding the U.S. Department of Labor (DOL) fiduciary rule.

The rule will undergo a DOL examination, and it could be amended or rescinded. Nevertheless, the rule went into force on June 9, 2017, and Aite Group included questions on the DOL fiduciary rule in its seventh annual survey of financial advisers to reveal the sentiment on the front lines.

Only about one-quarter of firms say they have handled certain rule preparations or implementation activities “very well,” including deciding a course of action (26%), technology/automation improvements (25%), keeping clients unaffected by fee changes (25%), internal communications and training (23%), workflow changes to data collection (23%), client communication (22%), product/pricing mix (22%) and adviser compensation (22%).

However, more advisers indicate they have handle these things “well.” Half or more have handled client communications (53%), keeping clients unaffected by fee changes (51%) and product/pricing mix (50%) well. Among other rule preparation or implementation activities, 47% have handled internal communications and training well, 46% have handled technology/automation improvements well, 46% have handled workflow changes to data collection well, 45% have handled deciding a course of action well and 41% have handled adviser compensation well.

Some firms also report handling these things poorly in some ways and well in other ways. Five percent each report handling technology/automation improvements and keeping clients unaffected by fee changes poorly, while 4% each indicate they have handled internal communication and training and adviser compensation poorly.

The survey report focuses on the responses of 152 financial advisers who actively service retail retirement accounts and state they are familiar with the impact of the DOL fiduciary rule in relation to working with clients.

Clients of Aite Group’s Wealth Management service can download the report from here.