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DOL Fiduciary News: November 4, 2016

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LPL Financial to take advantage of DOL rule preparation to gain market share

LPL Financial Holdings Inc. expects more assets to be in motion across the broker/dealer industry due to changes in the regulatory environment and wirehouse compensation.

Chairman and CEO Mark Casady said during an earnings call that the company still has work to do to comply with the U.S. Department of Labor's Conflict of Interest Rule, known as the fiduciary rule, but is positive about its business outlook for 2017 and plans to take advantage of its preparation for the new regulation to gain market share. (

Lincoln National distribution partners to offer products under BICE 

Most of Lincoln National Corp. distribution partners are continuing to work toward using the fiduciary rule's Best Interest Contract Exemption to serve retirement savers and will offer the choice of commissions or fees, whichever is in the client's best interests.

Of Lincoln's 10-largest variable annuity partners, nine will use the Best Interest Contract Exemption for commissions, President and CEO Dennis Glass said on a third-quarter earnings call. He also noted that 85% to 90% of the sales from the company's top 25 variable annuity partners will also allow commissions.(

The View from the (DOL) Trenches

Just a few years ago, mutual fund companies happily anticipated the “rollover opportunity”—a windfall that would come from managing the trillions of dollars in Boomer savings that were pouring out of 401(k) plans and into retail IRAs. “Capturing Rollovers” was their mantra.…

Financial services companies, especially the brokerage sector where employee-advisors earn commissions from manufacturers on the sale of funds and annuities, are now adjusting to the new rule. The actions of these distributors will have a big impact on the asset managers and insurers who rely on them to market their mutual funds, ETFs and annuities. (

Stifel will retain commissions in retirement accounts under DOL rule

Put Stifel Financial Corp. in the column of brokerage firms that will continue to pay both commissions and fees to advisers who work with client retirement accounts.

The past month has seen a steady roll call of major firms revealing their plans and compensation models to deal with the new Department of Labor fiduciary rule, which raises adviser standards when providing retirement advice and takes effect next April.

“On one end of the spectrum, several firms have decided to eliminate commission-based accounts entirely, while others have indicated a business model which will more significantly use the best interest contract exemption, or as it is referred to, the BICE,” said Stifel CEO and chairman Ron Kruszewski during a conference call Thursday morning with investors and analysts to discuss third quarter earnings. (

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