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DOL Fiduciary News: October 28, 2016

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DOL releases first batch of FAQs on fiduciary rule

InvestmentNews; Oct 27, 2016 @ 12:48 pm

The Labor Department issued its first set of answers (/contentassets/81837180e39747c5bbdf96186c06bcc1/httpwww.limra.comuploadedfileslimracomlimra_rootsecure_retirement_institutenavigating_regulatory_changeresourcesfaqondolfiduciaryrule.pdf ) to frequently asked questions about the fiduciary rule Thursday.

The FAQs, based on input received from financial services firms and other stakeholders, are “an important part of the regulatory process as they allow the department to clarify important parts of the rule and head off misunderstandings that could lead to bad results for retirement savers, or financial services professionals,” Phyllis Borzi, the rule's main architect, said in a blog post Thursday.

Raymond James will continue to allow commissions for IRAs under DOL fiduciary rule

InvestmentNews; Oct 27, 2016 @ 12:33 pm

Raymond James Financial Inc. on Thursday said it would continue to allow advisers to collect commissions for IRAs after the Department of Labor's fiduciary rule takes effect next year.

During an earnings call, CEO Paul Reilly said that the firm expected to continue to pay its 7,146 advisers both fees and commissions for the work they do with individual retirement accounts.

In so doing, Raymond James lined up with other large broker-dealers such as Morgan Stanley and Amerprise that said this week that they would continue to pay its advisers on a commission-basis on IRAs.

Advisers failing to comprehend impact of DOL fiduciary rule: Massachusetts regulator William Galvin

InvestmentNews; Oct 27, 2016 @ 4:01 pm

A lot of financial advisers are in the dark when it comes to the impact that the Department of Labor's new fiduciary rule will have on their businesses, according to state securities regulators from Massachusetts.

A survey of 327 Massachusetts registered investment advisers conducted earlier this year by the Massachusetts Securities Division found a lack of awareness of the impact on them of the Department of Labor's fiduciary rule regarding advice on retirement accounts, according to a statement from William Galvin, the secretary of the Commonwealth.

No Doubt Commissions Are Fading

PLANADVISER; October 27, 2016

The annual Productivity Insights report ( published by DST kasina denotes a few clear trends in investment product wholesaling that are already emerging as a result of the Department of Labor (DOL) fiduciary rule, among other ongoing shifts in regulation and client expectations.

At a high level, financial services firms are changing their salesforce compensation structure to regulate total returns for their sales teams and reflect their evolving corporate goals and strategies, explains Steven Miyao president of DST kasina. Many firms are shying away from commission-based structures in favor of “base and bonus driven compensation.”

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