Boston, November 10, 2016 – The U.S. Department of Labor’s fiduciary rule, applicable on April 10, 2016, and in full force on January 1, 2018, is vastly different from the previously applied suitability rule. The evidence required under a fiduciary role is more precise, the implementation of policies and procedures is more exacting, and the ramifications of failure are reputational, financial, and regulatory. The rule will impact the industry’s vendors, financial advisors, and clients, but how can market participants guess how to progress forward in such a limited amount of time?
This research, commissioned by eMoney Advisor and produced by Aite Group, identifies preparations financial institutions are taking to comply with the rule, considering their challenges and the anticipated impact on their business. It is based on 22 Aite Group phone interviews conducted from mid-August to early October 2016 with 16 FIs and six wealth management outsourcing platforms.
This 23-page Impact Note contains three figures and two tables. Clients of Aite Group’s Wealth Management service can download this report, the corresponding charts, and the Executive Impact Deck.
This report mentions LPL, Merrill Lynch, Edward Jones, Commonwealth Financial, Morgan Stanley, Ameriprise, and Raymond James.