Investors want to work with advisers who put their best interest to heart, Nationwide’s advisory solutions business found in a survey. Forty-eight percent said they would stop working with an adviser if they were not required by law to serve their best interest.
However, only 38% are aware of the Department of Labor’s (DOL’s) fiduciary
rule. And there are misconceptions. Fifty-nine percent incorrectly thought that
all financial advisers are already required by law to put their clients’ best
interests first, including disclosing fees and conflicts of interest.
Nationwide’s advisory solutions business also learned that 84% of advisers are aware of the fiduciary rule. Eighty-three percent believe that a fiduciary standard will benefit the growth of their practice, regardless of the status of the DOL rule.
“The industry has been changing for years, as more advisers migrate toward a fee-based approach when providing advice, and as consumers desire more simplicity, transparency and choice in their financial products,” says Mitchell Caplan, leader of Nationwide’s advisory solutions business. “It’s a powerful trend—and there’s no going back. The new DOL fiduciary rule has been a catalyst for change across the industry and creates opportunity.”