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DOL Fiduciary News: May 1, 2017

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Significant Transition Period for Compensation Changes [conference coverage]

InsuranceNewsNet; April 28, 2017

ORLANDO -- Compensation changes have long been anticipated since the Department of Labor released its controversial draft fiduciary rule in April 2015.

But as we get closer to the rule applicability date (June 9), agent compensation changes remain out of focus. The conditions barring things such as differential compensation and incentive-based compensation don't kick in until Jan. 1, 2018, said Thomas Roberts, principal with the Groom Law Group.

"We're looking at a significant transition period," Roberts said.

Roberts spoke today during a closing session at the LIMRA LOMA Secure Retirement Institute and SOA 2017 Retirement Industry Conference.

The SEC would have to jump through hoops to get approval for its own fiduciary rule

InvestmentNews (blog); Apr 28, 2017 @ 1:40 pm

Republican lawmakers and financial industry opponents of the Labor Department's fiduciary rule repeatedly say — almost like a mantra — that the Securities and Exchange Commission is the place where such a regulation should originate.

The DOL rule, whose implementation has been delayed until June 9, would require financial advisers to act in the best interests of their clients in retirement accounts. But the SEC has jurisdiction over securities regulation, and if it sets advice standards, they would apply to all retail investment accounts, DOL-rule foes argue.

No Fee Compression on Our Advisors’: Raymond James CEO

ThinkAdvisor; April 28, 2017

“We do not see fee compression on our financial advisors,” Raymond James Chairman and CEO Paul Reilly said in an interview Thursday during the firm’s national conference for independent advisors.

“Clients say, 'We will pay for what you do for me,'” Reilly explained. “Part of that is product selection, [though] asset allocation is almost a free giveaway.”

There’s the other side of the business, however, that supports advisors’ businesses. “Estate planning, financial planning, planning around kids … [and] next generation planning,” the executive said. “This is valued and really not under pressure.”

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