Fiduciary rule: Yes, RIAs must also adapt

Fiduciary rule: Yes, RIAs must also adapt

Skip Schweiss | April 26, 2016

After six years of proposals and feedback, the Department of Labor (DOL) released its final “Conflict of Interest Rule” on April 6, 2016.

Weighing in at a hefty 1,023 pages, it’s in a league with Dodd-Frank and the Affordable Care Act in brevity. And like those landmark bills, it will be years before we know the full set of impacts from this rule. I’m writing this less than three weeks after the release, and as someone recently said, “Right now, if you ask 3 lawyers what this rule says, you’ll get 5 different answers.” As someone else said, “’War and Peace’ rang in at 1,225 pages, and no one read that – much less thoroughly understood it – in a couple of weeks.” We are still reading and re-reading, and digesting the rule and various industry analyses, and trying to figure out how it will impact our business – and yours. One thing we can state with confidence is that it will impact all providers of investment advice to retirement investors.

TD Ameritrade Institutional has been working closely with fiduciary investment advisers, trade associations and others for years to advocate on behalf of RIAs and help raise the standard of care for investors. And our initial review indicates that the DOL accepted much of our input on behalf of RIAs.

Going forward, we will continue to provide RIAs with the support and resources they need to continue putting their clients’ interests first. Our objective, as always, is helping to ensure that investors have access to the advice, education and services they need to make informed decisions about their retirement.

To learn more about how the DOL ruling on fiduciary guidance and rollovers may impact your business, read the article I authored in Financial Planning or join our webcast on April 28.

For the latest updates and conversation around on how the DOL Rule affects you as an RIA, follow @TDASchweiss on Twitter.