DOL Fiduciary News: April 27, 2016
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DOL Fiduciary Means Higher Costs, Robo Exploration: Raymond James Exec
ThinkAdvisor; April 26, 2016
The new Department of Labor fiduciary standard represents “the most dramatic regulatory change in a number of decades, suffice to say,” explained Scott Curtis, head of Raymond James’ independent advisor channel, in an interview on Tuesday.
Speaking after his speech before some 1,700 advisors and 1,400 other guests at the firm’s yearly conference in Nashville, Curtis underlined comments made recently by CEO Paul Reilly.
Charles Schwab to Cease Selling Load Mutual Funds
The Wall Street Journal; April 27, 2016 5:30 a.m. ET
Charles Schwab Corp. plans to stop selling share classes of mutual funds that require investors pay a commission to brokers, the latest hit to the business of paying people to manage money.
Mutual fund companies have long sold share classes of their funds with so-called loads to compensate brokers and other sales agents. But those charges have fallen out of favor amid a more intense investor focus on fund cost, a move to fee-based advice and greater regulatory emphasis on fee transparency.
Janus CEO says DOL fiduciary rule will not change how it does business
SNL.com; Tuesday, April 26, 2016 12:34 PM ET
The Department of Labor's new rule requiring a fiduciary standard for retirement advisers will not affect the way Janus Capital Group Inc. operates, but will affect its distribution clients, according to CEO Richard Weil.
Janus plans to help its clients navigate through the rule, which governs the advisory relationship for retirement service differently than from taxable investments, Weil said during a conference call to discuss first-quarter earnings.
How Wirehouses, Experts View DOL Rule
From the May 2016 issue of Research Magazine
On April 6, the Department of Labor released its final version of a new fiduciary rule, which requires financial advisors to meet a fiduciary standard rather than a suitability standard when making investment recommendations for clients’ retirement accounts, including 401(k) plans and IRAs.
While registered investment advisor (or RIA) firms previously had to abide by a fiduciary standard as defined by the SEC, registered representatives (i.e., commission-based brokers) had no such standard, equity analyst Christopher Shutler, CFA, of William Blair explains in a recent report. “Therefore, while all advisors will be affected by the new rule, registered representatives will on average see more significant changes to their business models,” Shutler explained.
Cetera Financial Group® Creates DOL DynamIQs™ Platform to Support Delivery of Exceptional DOL-Compliant Client Service by Financial Advisors
LOS ANGELES, April 26, 2016 /PRNewswire/ -- Cetera Financial Group®, a leading network of independent broker-dealer firms, today announced the launch of DOL DynamIQs™, a comprehensive suite of integrated tools and resources designed to enable financial advisors to prepare for the Department of Labor's recently released fiduciary rule, and thrive in the new regulatory environment it has created.
Riskalyze Launches Comprehensive DOL Compliance Solutions for Advisors
SACRAMENTO, CA -- (Marketwired -- April 26, 2016) -- Riskalyze, the company that empowers thousands of advisors to align each client's investments with their Risk Number®, today announced a unified solution to address the compliance implications of the Department of Labor's (DOL) fiduciary rule. Riskalyze is stitching together its product line with updates, allowing advisors and firms to turn these industry challenges into opportunities.