Skip to content

DOL Fiduciary News: December 7, 2016

Please Note:

These links will take you directly to the homepage of the website that features the article.

To reach the article directly, copy and paste the article title into the search feature on the homepage of the publication website.

Uncertainty from DOL fiduciary rule impacts Principal's '17 outlook; Tuesday, December 06, 2016 12:50 PM ET

The U.S. Department of Labor's Conflict of Interest Rule could impact certain aspects of Principal Financial Group Inc.'s 2017 operating metrics, but the company is well-positioned, executives said during a Dec. 6 conference call.

The company provided 2017 guidance for its various businesses. In its Retirement and Income Solutions - Fee segment, the insurer expects net revenue growth of 2% to 5%, a range slightly lower than its long-term growth rate expectation. Terry Lillis, executive vice president and CFO, said the decrease was "due in part to the near-term uncertainty created from the DOL fiduciary ruling."

Small Independent B/Ds Stand to Lose a Lot under DOL Rule

InsuranceNewsNet; December 6, 2016

Small independent broker/dealers (IBDs) want nothing more than to see the Department of Labor’s fiduciary rule repealed, and from their perspective it’s not hard to see why. IBDs stand to lose an estimated $4 billion in revenue over the next four years because of the rule.

That's according to Peter Chiang, a principal at the consulting firm A.T. Kearney. Chiang is the co-author of an October report on the economic reverberations of the fiduciary rule on different distribution channels.

“For smaller independent broker-dealer folks, they're paralyzed and saying, ‘Frankly, I don't know what to do. Where do I even start? I don't have the money to comply,’” Chiang said.

Fiduciary Rule Day 1: Lawsuits, Arbitration Filings Predicted

Financial Advisor; December 6, 2016

There will be multiple lawsuits along with new Finra arbitration cases when the Department of Labor’s fiduciary rule takes effect April 10 and a much larger surge when it is fully effective January 1, 2018, Public Investors Arbitration Bar Association Executive Vice President and President-Elect Andrew Stoltmann said Tuesday.

On the first day, brokers will have a legal obligation to re-examine retirement investment recommendations he or she made three years ago to find if they are suitable, appropriate and not a breach of a fiduciary duty, the private Chicago attorney said.

Compliance expert answers 7 looming fiduciary rule questions; December 6, 2016

With the April 10, 2017 deadline to meet impartial conduct standards of the Department of Labor’s conflict of interest (fiduciary) rule just 5 months away, industry stakeholders are ratcheting up their compliance efforts.

For a high-level view of issues they can expect along the way, LifeHealthPro interviewed Ben Yahr, a senior manager of EY’s financial services office.

The discussion explored questions that financial institutions and retirement advisors will face during the rule’s phase-in, how products and producer compensation might evolve, as well as prospects for the rollover market and the M&A space. The following are excerpts.

Did you accomplish the goal of your visit to our site?

Yes No