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DOL Fiduciary News: April 20, 2016

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DOL Rule Will Boost Profession: American College 

Financial Planning; April 19, 2016

The professional standing of advisors should receive a boost from the Department of Labor's fiduciary rule, says Robert Johnson, president and CEO of the American College of Financial Services.

"This is a move that could very much professionalize an industry that very much needs it," says Johnson.

But he is also concerned about the potential unintended consequences of the DoL rule squeezing out the middle market for retirement benefit advice.
(http://www.financial-planning.com)

PSCA Issues Analysis of DOL Fiduciary Rule 

CHICAGO, April 19, 2016 /PRNewswire/ -- The Plan Sponsor Council of America (PSCA) has reviewed the recently released Department of Labor final rule on the fiduciary standard and today issued an analysis of the rule and its impact on plan sponsors and their advisers. To read the analysis, click here -- http://www.psca.org/final_fiduciaryrule_analysis.  

"This final rule reflects the DOL's belief that the retirement industry has evolved significantly since the original fiduciary rules were adopted in 1975, given explosive growth in participant-directed defined contribution retirement plans and IRAs nationwide," said Rich McHugh, Vice President of Washington Affairs. "But the rule also has evolved since re-proposed in 2015 to take into account concerns and suggestions from the industry."
(http://www.prnewswire.com)

TD Ameritrade ramping up internal staffing to deal with fiduciary rule 

SNL.com; Tuesday, April 19, 2016 11:31 AM ET

TD Ameritrade Holding Corp. is preparing to spend to deal with the compliance complexities of the Conflict of Interest Final Rule, commonly known as the fiduciary rule, issued by the Department of Labor.

Executive Vice President and CFO Stephen Boyle said during an April 19 earnings call that the company would initially boost internal staffing and incur consulting expenses. Incremental investments in advice products and expenses related to the compliance of the fiduciary rule would result in a modest increase in operating expenses in fiscal year 2016, Boyle said.
(http://www.snl.com)

Dear Advisors: Keep Selling FIAs Despite DOL Rule 

InsuranceNewsNet; April 19, 2016

Hot-selling fixed indexed annuities (FIAs) were dealt a blow when federal Labor Department regulators made it more difficult to distribute the products into retirement accounts.

So where do FIAs go from here?
(http://insurancenewsnet.com)

DOL fiduciary rule creates 'prime hunting season' for 401(k) specialists 

InvestmentNews; Apr 19, 2016 @ 12:58 pm

A panel of executives representing broker-dealers and registered investment advisers said the fallout from the Labor Department's new fiduciary rule would create a ripe opportunity for advisers specializing in 401(k) plans to steal business away from less-specialized “generalist” advisers.

“We think there will be a lot of plans in play,” said J. Fielding Miller, chief executive of CAPTRUST Financial Advisors. “This is kind of like prime hunting season for our industry.”
(http://www.investmentnews.com)