DOL Fiduciary News: May 2, 2016
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Principal Financial Group expects no significant increase in expenses from DOL rule
SNL.com; Friday, April 29, 2016 1:11 PM ET
Principal Financial Group Inc. will be able to help small employees save money under the new fiduciary standard for retirement advisory services at no significant cost increase, President and CEO Daniel Houston said April 29.
The company expects some extra costs for transition and compliance as the regulations take effect in 2017 and 2018, but no significant increase in run rate expenses, Houston said during a conference call to discuss first-quarter earnings.
LPL Financial CEO: Fiduciary rule could lower profits but boost market share
SNL.com; Thursday, April 28, 2016 7:20 PM ET
The proposed fiduciary standard for retirement savings advisers could make some services less profitable but help LPL Financial Holdings Inc. gain market share, Chairman and CEO Mark Casady said April 28.
Retirement products make up 30% of LPL Financial Holdings' assets, the executive said during a conference call to discuss first-quarter earnings. While the U.S. Department of Labor's rule change could shift more retirement services away from brokerage to advisory business, LPL Financial Holdings believes it will have more assets to offer.
Federated CEO: Trust law offers way to defend 12b-1 fees as 'reasonable' under DOL fiduciary rule
SNL.com; Friday, April 29, 2016 11:47 AM ET
In Federated Investors Inc.'s view, certain fees most firms expect to be disallowed under the new fiduciary standard are legally defensible.
During a conference call to discuss earnings, Chairman, President and CEO J. Christopher Donahue said his view of the Department of Labor's final version of the fiduciary rule is informed by his experience as a lawyer working on trust apartments. Fiduciary law hinges on two components, he said: the duties of loyalty and prudence. Those have been a part of Federated's ethos since the beginning, he said.