InvestmentNews reporters offer their take on intriguing or controversial articles from around the web.
Sep 30, 2016
Attrition fears play into broker-dealers' hesitation to detail new commission schedules under DOL fiduciary rule
One main theme emerged amid discussion about the Labor Department's fiduciary rule at the Insured Retirement Institute's annual conference this week: Broker-dealers are either still determining the annuity commissions that would likely satisfy the rule's “reasonable compensation” requirements, or they've made that determination but have taken a vow of silence.While it's likely not broker-dealers' primary motivation for keeping mum, fear of adviser attrition plays into their strategy, insurance and brokerage executives said. Let's take a step back for a second to set the stage. The Department of Labor's regulation, released in April, makes a fiduciary of anyone receiving compensation for providing investment advice in retirement accounts such as IRAs and 401(k)s.The rule, which aims to eliminate conflicts of interest, says advisers and financial institutions must only receive reasonable compensation for the recommendation of ... Read full post
Nov 20, 2015
Is Fidelity's plan to ditch relationship with Betterment and build its own robo too little, too late?
Fidelity Investments' plan to sever its relationship with robo-adviser Betterment Institutional in favor of building an automated investment platform on its own has some observers wondering if the mutual fund giant's strategy is too little, too late.The pair's "strategic alliance" contract will end in December after only a year, as first reported by RIA Biz. Fidelity will continue to work with advisers who choose to use Betterment, and it also will work with other third-party robo vendors, Fidelity spokeswoman Erica Birke said in an email. At the same time, Fidelity will use its resources to create its own digital advice platform. "[M]any of our clients are still looking to learn more about digital advice," Ms. Birke said. "We have been and will continue to deliver the solutions, thought leadership and insights our clients need to feel informed and capitalize on this important trend."DETAILS IN 2016The company will announce more... Read full post