“In contrast to that commotion over the [Department of Labor] rule, it’s been mostly crickets from the brokerage industry when it comes to firms announcing concrete changes they are making … in preparation for Reg BI.”
The above excerpt from this week’s cover story on Regulation Best Interest by Mark Schoeff Jr. underscores the industry’s reaction to the new rule. The similarities between the hue and cry that accompanied the DOL’s fiduciary rule and the pending judicial decision around Reg BI stand out to me.
The reaction is intriguing because this industry’s reputation does not include quietly abiding the intrusion of external forces. As one source in the article suggests, perhaps it’s semantics because “fiduciary” (the ‘F’ word) feels weightier than “Best Interest.” Plus, the implementation guidance of “good faith effort” and “reasonable progress” leave lots of gray area.
But the second issue may well be the reason for the crickets. A hearing Tuesday will determine if the Securities and Exchange Commission exceeded its authority and ignored Dodd-Frank, so perhaps the relative quiet indicates a delay is more likely than the scheduled June 30 implementation.
Ultimately, does strict regulation create a greater burden than best-efforts guidance? Watching the implementation across the industry will answer that intriguing question.
The bank's new training initiative aims to add hundreds of advisors as it expands its mass-affluent advice unit, according to Barron's.
The lawyers' group warns that adjudicating certain claims externally and limiting punitive damages, among other suggestions, could hurt investors.
With Parkworth Wealth Management and its Silicon Valley tech industry client base now onboard, Savant accelerates its vision of housing 10 to 12 specialty practices under its national RIA.
The wealth tech giant is unveiling its new offerings, designed for advisor productivity and client engagement, as investors and experts continue to grapple with the implications of AI.
Meanwhile, Merchant is continuing to expand its support for RIAs by partnering with a South Dakota-chartered trust company.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
