Filed Under:Your Practice, Regulatory

Fiduciary rules will cost millions in compliance

(AP file photo)
(AP file photo)

Huge changes – including millions of dollars in compliance costs to the brokerage industry and higher costs to investors – are in store if the Department of Labor and Securities and Exchange Commission decide to adopt a uniform fiduciary standard.

It may be weeks, if not longer, before that decision is finalized but the question has been hanging over the industry’s head most of this year.

More than 75 percent of the broker-dealers said they planned to hire outside legal counsel to help prepare the guide.

The vast majority of the firms' estimated costs fell into out-of-pocket expenses and employee and staff-related costs, which included:

There are companies that might try to follow the Charles Schwab model, which works with both sides of the business.

“[Broker-dealers] will still exist, but because there will be less ability and incentive to provide the pure brokerage base, the pure revenue-sharing base, that part of the market will dry up and individuals will have to go to the advisory fee side or a firm that offers both,” Bleier predicted.

Originally published on BenefitsPro. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.