New DOL Fiduciary Ruling Sparking Unprecedented Levels of Advisor Anxiety

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Advisor Anxiety

While advisors agree with the overall concept and spirit of the Department of Labor’s fiduciary ruling, concerns ring aplenty, as the vast majority have yet to be convinced that the new legislation will deliver on its intent. First and foremost, advisors lament that the DOL fiduciary ruling is casting an overall negative industry gloom and is fueling investors’ focus on fees.

Perhaps even more importantly, advisors believe that the DOL action is forcing them toward a fee-based compensation structure and limiting their product selection. As such, advisors fall into two camps: those who are already fee-based see the DOL action as formalizing an inevitable market shift, while commission-based advisors fear that commoditizing their service puts them at greater risk of being undercut by cheaper automated advice services.

In addition, making the advisory role even more onerous, advisors indicate that their personal liability concerns are heightened due to the increased volume and scope of internal and external regulations. As a result, many advisors report feeling increasingly monitored rather than supported by their firms.

Advisor DOL Questions

In the context of all of these challenges, advisors remain open to business-building ideas to improve their expertise and are committed to working strategically to future-proof the industry. Advisors welcome any technological advancement that can alleviate administrative tasks and enable them to focus on more customized service. Last but not least, advisors indicate a need for wide-ranging promotion and advocacy creating
transparent messaging for clients and presenting a united front to government regulators.

The Advisor of Tomorrow™ report examines new expectations for financial planning and advice. Advances in technology, tightening fiduciary regulations and new expectations from the Millennial generation are raising the standard of investment advice and causing financial advisors to significantly adapt their strategies. As the landscape changes, advisors are looking beyond today to be ready for tomorrow. These groundbreaking focus groups reveal what tomorrow’s financial advisor will look like and what types of support they will need. For more information, review an overview of the full report including the table of contents and list of exhibits.


Review an Overview of the Report




This entry was posted in Financial Services, Qualitative and tagged , , , , by Sonia Sharigian. Bookmark the permalink.
Sonia Sharigian

About Sonia Sharigian

Sonia is a senior product manager for Cogent Reports with more than 10 years of experience in journalism, marketing and research. She has managed numerous qualitative and quantitative studies in the financial services industry, as well as the hospitality, consumer packaged goods and retail sectors. Prior to Market Strategies, Sonia served as a community manager for Communispace Corporation, where she helped major brands generate game-changing insights via online communities. She also worked as a public relations specialist for Putnam Investments and as a staff reporter for Community Newspaper Company. Sonia earned an MBA from Boston University School of Management and a bachelor’s degree in communications from Simmons College. She is an ardent Patriots fan who recently became hooked on sprint triathlons.

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