Success in the Wake of the DOL Fiduciary Rule
The DOL Fiduciary Standard Rule Change: Impact on Advisors
The new Department of Labor Fiduciary Standard Rule focuses on putting an investor’s best interests ahead of all other factors when providing investment advice to a retirement investor.
While many advisors adhere to that principal when working with their clients to reach goals, the new rule will specifically affect advisors who provide advice and guidance to clients investing in individual retirement accounts (including 401(k) rollover accounts).
Advisors who work with clients and who recommend commission-based products within an IRA may choose to complete a new contract, called the “Best Interest Contract Exemption” (BICE), to continue their current practices. However, there are significant compliance considerations and increased costs to this approach.
Fee-Based Product Alternatives
The new Fiduciary Standard rule does make one point clear: asset-based compensation that does not vary based on types of investment will not require a BICE. Thus, many firms are shifting to an entirely fee-based advice model.
FolioDynamix has a suite of options available that leverage professional money managers, institutional-quality research, offer various levels of control based on firm/advisor preference, and feature mutual fund, ETF and separately-managed account options.
We work with clients to:
- Quickly and efficiently create an advisory program to support converting retirement accounts
- Support the conversion of commission-based products into comparable products within an advisory account
- Set up a process to automate and service low balance accounts*
- Offer out-of-the-box advisory products available for white-labeling
Time to market: We can have you up and running within 45 days.**
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* Minimums may apply
** Due to client requirements or circumstances, implementation time may vary.