DOL Fiduciary News: August 24, 2016

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LPL in full court press to comply with DoL rule, execs tell advisers

Financial Planning; August 23 2016, 6:05pm EDT

SAN DIEGO -- LPL Financial President Dan Arnold likened compliance with the Department of Labor's new fiduciary rule to climbing an "ugly and difficult hill" at the organization’s annual conference.

But once it became clear the rule would be a done deal, LPL rapidly shifted resources from fighting it to figuring out how to adapt quickly to gain a market advantage over rivals, he said.

"In the midst of working and thinking about how to comply with this rule, we realized that every single person in the industry has to make the same climb," Arnold said. By lowering prices and account minimums across its offerings, among other changes, LPL decided it could come into compliance "from a place of strength," he said.
(http://www.financial-planning.com)

Edward Jones Really Likes Those Fees 

Bloomberg (column); Aug 23, 2016 10:35 AM EDT

By Nir Kaissar, Unison Advisors

The Department of Labor rocked the brokerage world several months ago when it decreed that brokers must – horror of horrors – put their clients’ interests ahead of their own.

The so-called fiduciary rule (which applies only to retirement accounts for now) is meant to address a longstanding problem. Brokers routinely recommend mutual funds to retirement savers as an easy way to broadly diversify their accounts. But unbeknownst to investors, in many cases the mutual fund companies pay brokers to sell those funds.
(https://www.bloomberg.com)