DOL fiduciary rule: Disruption or opportunity? Opinion
July 18, 2016 by Anton Honikman
Most coverage of the Department of Labor’s (DOL) fiduciary rule has focused on the challenges it will introduce for firms, such as increased costs, compliance and margin pressure. However, as we all know, within any challenge there lies opportunity.
With today’s new challenge, industry leaders will take the opportunity to go beyond the basics of the DOL rule and will embrace the spirit of the rule to become truly client-centric. Beyond just avoiding conflicts, the spirit of the new rule encourages advisors to put their clients‘ best interests ahead of all other factors when providing investment advice on retirement accounts.
Practically speaking, many expect the rule to accelerate the industry’s ongoing transition from commission to fee-based advice in these situations. I believe the spirit of the new rule will also accelerate a bigger long-term trend in our industry — the move from a product-centric to a client-centric way of doing business. Those who embrace this spirit of the DOL rule can use it as a catalyst to transform their firms and differentiate themselves from their peers. Click HERE to read more. LifeHealthPro articles may require free registration to view.