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DOL Fiduciary News: October 24, 2016

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Schwab CEO: DOL Could Spur More Breakaways

Financial Advisor; October 21, 2016

The DOL rule could give a boost to the RIA breakaway business if more wirehouse reps shift to a fee-based model, said Walt Bettinger, CEO of Charles Schwab Corp.

“One could envision a larger percentage of those brokers considering a movement into the independent RIA model,” Bettinger said Friday during a business update with analysts.

With wirehouse commission and fee payout rates of 45 percent to 50 percent, compared to a 60 percent to 70 percent payout at RIA firms, “it could be an enticing means by which you see a little bit of a burst in brokers deciding to go into that independent RIA space,” he said.

Judge Sets Hearing on Thrivent vs. DOL Lawsuit

InsuranceNewsNet; October 21, 2016

Judge Susan Richard Nelson scheduled a March 3, 2017 hearing on Thrivent Financial's request for a preliminary injunction against the Department of Labor fiduciary rule.

Filed in U.S. District Court for the District of Minnesota, Thrivent’s 29-page lawsuit claimed the DOL rule will render its dispute resolution mechanism obsolete.

A Word to the Wise Advisor [DOL rule and fees]

Retirement Income Journal; Fri, Oct 21, 2016

In a financial world that’s shifting from commissions to fee-based compensation, how will advisory firms deal with the fact that most clients don’t like the word “fees”?

As broker-dealers scramble to adapt to the Department of Labor’s new fiduciary rule over the next six months, one challenge will be to teach thousands of advisors how to explain the effect of the new rule on, among other things, fees—a topic that increasingly concerns investors.

DOL fiduciary rule won't help some 403(b) retirement plans

InvestmentNews; Oct 21, 2016 @ 1:07 pm

Through its fiduciary rule, the Department of Labor is attempting to rein in conflicted investment advice and reduce costs for retirement savers.

However, there's a corner of the retirement market plagued by the sort of high fees and sales practices the DOL is attacking that won't be touched by the regulation: public school districts.

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