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DOL Fiduciary News: January 25, 2017

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Super-IMOs Get 16 Months to Comply with DOL Rule for Exemption

InsuranceNewsNet; January 24, 2017

Independent marketing organizations will have a 16-month grace period before they have to follow the Department of Labor's new IMO exemption in the fiduciary rule.

Qualified IMOs only need to show that they are making a good faith effort and are “presently taking steps to put in place the systems necessary” to meet best interest contract standards, and that the IMO “fully intends to comply with all the applicable conditions for such relief after the expiration of the transition period,” DOL documents said.

If DOL Fiduciary Gets Delayed, Seize the Moment: FSI’s Brown

ThinkAdvisor; January 24, 2017

With a new sheriff in town, the new Department of Labor fiduciary rule is expected to be delayed — giving the industry the chance to work on reforms that make more sense for it, according to Financial Services Institute President and CEO Dale Brown.

“Here we are a few days into the Trump administration with a sweeping agenda of change,” Brown told about 700 advisors and broker-dealer employees at the FSI OneVoice 2017 conference in San Francisco on Tuesday.

Fiduciary Era Is Here, Regardless Of DOL Rule, B-Ds Say

Financial Advisor; January 24, 2017

Even if the Department of Labor's fiduciary rule is delayed or voided, the fiduciary era is a new fixture in the advisory business. That was the message of Valerie Brown, executive chairman of The Advisor Group, and other B-D executives at the Financial Services Institute's annual OneVoice conference in San Francisco.

Brown said she that while the DOL rule focused only on the retirement side of the business, she expected broker-dealers and advisors would ultimately have to introduce "a consistent standard of care across all our businesses." Given that advisors are the ones on the front line, B-Ds need to help them "see around corners and minimize conflicts of interest." In January, Advisor Group conducted a roadshow with its reps in which executives discussed how to engage in a higher standard care.

Inside Wall Street’s Secret War on American Investors [fiduciary rule]

Money Magazine; Jan 24, 2017

If your doctor prescribed only brand-name medications because he received a kickback from the pharmaceutical company, he’d probably end up in jail. But when financial advisors put your money in investments that pay juicy commissions? The picture hasn't been quite so clear cut—and an effort to change the rules is now hanging by a thread (

For years, many brokers have been allowed to push expensive or risky investments, even if there were cheaper alternatives, under what was known as the "suitability standard": Investment recommendations needed only be "roughly suitable" for the client. In practice, that means if your advisor is weighing two similar investments, and one pays out a greater commission, he or she can put you in that one—even if the alternative would trim your fees and increase your overall returns.

Slow down, streamline, cut complexity, Pershing's Crowley urges at FSI

Financial Planning; January 25 2017, 1:27am EST

SAN FRANCISCO — “Fiduciary,” “DoL” and “consolidation." Count these among the most frequent words tripping off the tongues of executives speaking on panels, over coffee and in elevators, here at the Financial Services Institute's annual OneVoice conference.

And that's a problem, Pershing’s head of global client relationships, James Crowley, said in an interview. The current, obsessive focus on these buzzy subjects is obscuring more important trends in the financial services industry.

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