DOL Fiduciary News: January 27, 2017
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6-Month DOL Rule Delay Expected Within Days
InsuranceNewsNet; January 26, 2017
A six-month delay announcement on the Department of Labor's fiduciary rule is expected any day now, followed by eventual repeal, analysts said.
“The Department of Labor fiduciary rule itself is not something that can be whisked away with the stroke of a pen,” said Bradley Campbell, of Drinker Biddle & Reath, a law firm that advises on DOL issues. “The rumors that we’re hearing are that the first action will be to delay the rule for about six months and then do a formal notice of comment for a longer delay, say a year, and a notice of comment on repealing or modifying the rule.”
Raymond James holding off on complying with DOL fiduciary rule, CEO says
SNL.com; Thursday, January 26, 2017 11:53 AM ET
Raymond James Financial Inc. is ready to comply with the U.S. Department of Labor's fiduciary standard rule, but the company has not forced its financial advisers to completely adhere to the soon-to-be implemented regulation just yet, CEO Paul Reilly said.
The fiduciary rule is aimed at reducing conflicts of interest for financial advisers working with retirement accounts, and compliance is set to start in April. Reilly said Raymond James' advisers are aware of the steps they would need to take because of the regulation, but the company has been waiting for the rule to come into play before making all the adjustments in case the rule is rewritten.
Morgan Stanley to Reduce Wealth Fees Even With Rule Uncertainty
Bloomberg; January 26, 2017, 4:43 PM EST
Morgan Stanley, one of the biggest U.S. brokerages, said it plans to move ahead with client-friendly changes designed to comply with federal rules despite uncertainty over whether the regulation will be implemented.
“There has been a great deal of speculation about the future of the Department of Labor’s fiduciary rule under the new administration,” including the possibility that it will be changed or scuttled, Shelley O’Connor and Andy Saperstein, who head the New York-based firm’s wealth-management division, said Thursday in a memo to employees.
Invesco CEO says industry preparing for DOL rule despite new administration
SNL.com; Thursday, January 26, 2017 12:28 PM ET
Invesco Ltd. President and CEO Martin Flanagan said asset managers and brokers believe President Donald Trump's administration will delay the implementation of the Department of Labor's Conflict of Interest Rule, but the investment industry is still preparing to comply with the regulation.
"In some ways, I don't believe the fiduciary rule's going away," Flanagan said during an earnings call. "I think there could ultimately be some modifications and the [Securities and Exchange Commission] syncing up a definition of fiduciary rule."
DOL Fiduciary Rule Inspires New Alphabet Soup of Fund Shares
ThinkAdvisor; January 26, 2017
A bevy of new share classes are cropping up to help advisors comply with the Department of Labor’s fiduciary rule — T, P, and Z to name a few.
Janus recently filed (https://www.sec.gov/Archives/edgar/data/277751/000119312517018425/0001193125-17-018425-index.htm) with the Securities and Exchange Commission to launch P and Z share classes for all of Janus’ intermediary funds except money markets.
Drew Elder, head of distribution at Janus, said both share classes “give lower sales charge options to our intermediary partners.”