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DOL Fiduciary News: June 16, 2016

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LPL Financial CEO shrugs off impact of fiduciary rule

Reuters; Tue June 14, 2016 5:05pm EDT

As Wall Street moves its fight against a new regulation for retirement account advice to the U.S. courts, LPL Financial Holdings Inc. just wants to go about its business.

The cost of implementing the U.S. Department of Labor's new rule, which requires financial brokers to act in clients' best interests when it comes to retirement accounts, is "not terribly significant" to LPL given its business model, says Mark Casady, the company's chairman and chief executive.

Vanguard's McNabb Sees DOL Rule as Here to Stay 

Financial Advisor; June 15, 2016

Financial advisors and fund firms should presume the new Department of Labor fiduciary regulations will be enacted, despite recent lawsuits filed against the new rules, said the head of a top mutual fund firm.

“They have an uphill climb with the court case. … [The lawsuits] will play out and take time. We will march ahead and assume the rule will be as written,” William McNabb, chairman and chief executive officer of Vanguard, said at the Morningstar Investment Conference on Wednesday.

Grappling with fiduciary, active-passive debate and more at Morningstar 

Financial Planning; June 14 2016, 2:21pm EDT

CHICAGO – Advisers may tell their clients about the perils of overreacting to events, but advisers themselves may find the world passing them by if they don’t react aggressively to industry developments.

That was the overarching message of an expert panel titled “Practical Advice for an Evolving World” at the annual Morningstar Investment Conference.

While the panelists agreed that the new fiduciary rule will amount to a significant change for the advisory industry, they underscored that the Department of Labor fiduciary regulations set to begin to take effect next year only cover a portion of client assets: those in retirement plans.

Is the U.S. fight over fiduciary rule really about the little guy? 

Reuters (column); Thu June 16, 2016 7:17am EDT

The U.S. Chamber of Commerce wants you to believe it is looking out for the little guy in its fight against new government regulation of the retirement investment advice industry.

But that is a facade – as one consumer advocacy group found out when it checked the Chamber’s claims of grassroots support for its battle to stop the U.S. Department of Labor’s new “best interest” standard for retirement advice.

This fight is really about something else – $19 billion in potential lost revenue now controlled by stock brokerage, life insurance and other companies that do not want to make drastic changes in their business models.

PSNC 2016: Fiduciary Rule Fundamentals 

PLANSPONSOR.COM; June 16, 2016

According to Steven Wilkes, of counsel, the Wagner Law Group, there are more than a few pressing items that should be top of mind for plan sponsors heading into the back half of 2016—but chief among them is probably prepping for the Department of Labor’s (DOL) fiduciary rule reform.

Wilkes outlined his argument during the opening day of the 2016 PLANSPONSOR National Conference, held for the first time this year in Washington, D.C. Just a few miles from the department’s headquarters, he urged plan sponsors in the audience to study the broadening of the DOL’s definition of the term “fiduciary” directly to determine how it will apply to the intricate workings of their own plans.

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