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DOL rule Tag

DOL regulation translates into pay cut for some advisers

20:14 21 July in In the News by rafferty

July 20, 2017

By Bruce Kelly, Investment News

The Department of Labor’s fiduciary rule has morphed into a pay cut for some advisers, who are left wondering whether a reduction in their compensation is being used to bolster the bottom lines of the broker-dealers with which they work.

Sure, it would be rather cynical to say that firms are taking advantage of the new fiduciary rule, meant to eliminate potential conflicts brokers face when recommending one product to clients rather than another. The rule is meant to do good for investors, so how could it be twisted to the detriment of advisers?

The brokerage business can be a cynical business. Just think of the dotcom bomb of 2000 and the credit crisis of 2008.

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ThinkAdvisor

100% Advisory Payouts & 7 Other ‘Heresies’

17:26 29 June in Articles Written by Jon Henschen by rafferty

June 28, 2017

By Jon Henschen, as published on ThinkAdvisor

Advisors take note: Many sacred cow profit centers being disrupted by broker-dealers promoting “loss leaders” to prospects

There is a mad scramble going on as new DOL rules erode once reliable sources of independent broker-dealer revenue. Shifting or creating new profit centers is becoming an obsession for broker-dealers.

For some, it’s a matter of survival. For others, such as private-equity owned broker-dealers, getting profits up to a level that will make the broker-dealer attractive for an aggressive sale price is the prime motivation.

New DOL rules are also causing broker-dealers to implement more conservative compliance policies that many advisors find too restrictive. For firms that buck the trend,

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