DOL Fiduciary News: September 27, 2016
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Fiduciary rule could spur innovation
LifeHealthPro; Sep 27, 2016
The DOL fiduciary rule is likely to be a disruptive force within the insurance and financial industries during the next several years. Panelists during a session Monday at the Insured Retirement Institute’s Vision annual conference in Colorado Springs explored some of the possible outcomes of the rule.
While industry players are still absorbing the language and nuances of the rule as well as the practical impact on their operations, the potential for class-action lawsuits was top of mind for panelists.
“Trust me, they will come,” said Bernie Gacona, senior vice president and director of annuities for Wells Fargo.
Insurers cite broker-dealer annuity requirements as 'big issue' under DOL fiduciary rule
InvestmentNews; Sep 26, 2016 @ 4:26 pm
The catering by insurance companies to specific broker-dealer requests on annuity product design has been a major change, and challenge, for the industry as implementation of the Labor Department's fiduciary rule draws closer.
Insurers are trying to remain flexible as product distributors weigh the annuity specifications that make the most sense for their adviser forces and clients while remaining compliant with the Department of Labor regulation, executives said Monday at the Insured Retirement Institute's annual Vision conference in Colorado Springs, Colo. The rule requires financial advisers to act in the best interests of their clients in retirement accounts.
Advisers warming up to the DOL rule, see business opportunity: Fidelity poll
InvestmentNews; Sep 26, 2016 @ 1:24 pm
Financial advisers' views on the Department of Labor's fiduciary rule have taken a surprising turn, as more are seeing the rule as having a positive impact on their business, according to a new study from Fidelity Investments.
A recent poll of financial advisers at wirehouses, broker-dealers and RIAs revealed that 29% see opportunity in the DOL investment advice rule — up 17% from January — while close to a quarter of respondents believe the rule will have a positive impact on their ability to acquire and retain clients.
Broker-dealers on DOL fiduciary rule: Expect advisors to walk
LifeHealthPro; Sep 26, 2016
More than half of broker-dealers (54 percent) believe some of their advisors will retire rather than sell under new business rules to comply with the Department of Labor’s fiduciary rule, according to a LIMRA Secure Retirement study.
“Because the rule increases advisors’ liability, B-Ds also expect their advisors to stop providing advice to clients with lower IRA account balances,” said Kathy Krozel, research director, LIMRA Distribution Research. “At a time when more Americans need access to advice, it appears that the new DOL rule may actually reduce access for middle income consumers.”