Wealth management executives at banks and credit unions aren't waiting around for a last-minute reprieve on the fiduciary rule. They're overwhelmingly pressing ahead with plans to make sure they're in compliance with the regulation by the April 10 deadline.
The majority – 95% – are planning for the rule to go into effect as scheduled, with only 5% slowing down their preparations, according to an online survey conducted this week by Kehrer Bielan Research & Consulting. Indeed, almost two in three executives (65%) say they are on track to meet the upcoming deadline.
The executives were evenly divided between thinking the rule will be delayed (28%), modified (34%), or left unchanged (34%). Only 3% expect the rule to be repealed.
Regardless of what happens to the rule, executives are likely to adjust adviser compensation, with 48% saying they will change pay plans to remove conflicts.
If the rule is indeed repealed, 29% would adopt a best interest standard and only 5% would eliminate commission products, the survey found.
Annuity, life Insurance and other product providers were more likely to think that the rule will be scrapped. More than one in four, 27%, said they think the new administration will overturn the rule. They were also more eager to want to slow down or stop preparations, with 18% pulling back and 9% halting preparations entirely.
The online survey polled executives from 77 banks, credit unions, third-party broker-dealers and product providers.
