In coming years, the broker-dealer business model will be under threat from the looming rollout of the Department of Labor’s fiduciary rule, which at best will likely reduce upfront commissions and drive a shift toward more level compensation for advisors, and some predict may eventually eliminate product commissions altogether.

Notably, a world without commissions is not necessarily the death knell for advisors. The non-commissioned RIA segment of advisors has already experienced great growth in recent years, and most brokers think it’s reasonable to be required to give advice in the best interests of their clients.

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