Fiduciary standard

With clients anxious after all the negative ads, advisers have some explaining to do.

With clients anxious after all the negative ads, advisers have some explaining to do.

The SEC found that auditing or testing would likely have revealed deficiencies in controls that allowed an employee access to client information at the wirehouse, says leading compliance expert Alan Foxman.

"I expect a seismic change as product manufacturers will have to adapt to the new rule," says NextCapital's Rob Forreger.

Some advisers may think the regulations won’t affect them. Here’s why they’re wrong.

Worthy ideas debated on the fiduciary rule, retirement prep and annuities.

“There are so many business models offering financial advice, it’s almost impossible for a layperson to distinguish between advice and sales,” a panelist says.

The group aims to provide planners with new technology focused on helping a firm become compliant, but it may cost them.

The nontraded REIT industry moved to introduce a new share class following tighter regulations.

The new regulations are “arbitrary and capricious," a trade organization asserts.

The U.S. Chamber of Commerce, SIFMA, FSI and other groups are asking a Texas court to vacate the Labor Department's new regulations less than a year before the rule goes into effect.

The fiduciary rule flips wealth management on its head, especially in the bank channel. Smaller books will be just one response at Cetera.

“The SEC is notorious for blowing through rule-making deadlines—both congressionally mandated and self-imposed, such as this,” says Micah Hauptman, financial services counsel at the Consumer Federation of America.

“The election could be disruptive to this rule,” Brian Hamburger predicted.

How have other countries that introduced fiduciary standards before the U.S. fared? Toronto-based adviser Trevor Parry gives the long view.

Analysis: Arguably the greatest adjustment pressure will be on annuity companies and broker-dealer and insurance firms that will not likely qualify for the level-fee fiduciary exception.

The trio expressed confidence in their ability to weather the impact of the rule on their wealth businesses during recent earnings calls.

The traditional grid that delivered handsome payouts for advisers will likely go away for all but the top performers.

If advisers fall short, “required disclosures will provide a roadmap to the plaintiff’s attorney to pursue."

The clock is ticking for the onset of an incredibly far-reaching new fiduciary rule. Here’s who it helps — and hurts.