The fiduciary rule proposal from the Department of Labor that’s been debated for months (years, really) isn’t perfect. But it’s frustrating to hear the industry argument that small investors and small business owners will lose out if the proposal is adopted. That claim doesn’t take into account the digital revolution happening in financial advice, nor does it acknowledge competitive forces that would chase any new client opportunities, regardless of size. When you examine the industry’s claim from the perspectives of technology and current broker-dealer practices, you’ll see that doomsday premise is blatantly false, and here’s why.

The issue of serving smaller clients and the retirement plans of small businesses comes down to two things: technology and business model. Numerous broker-dealer executives have argued their firm and advisors will not be able to serve smaller accounts if they are no longer able to be compensated through commissions.

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