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The Department of Labor (DOL) fiduciary ruling, despite not being fully enacted, as well as the recent calls for repeal and uncertainty regarding timing, has already altered the financial services industry substantially. Heightened fee scrutiny throughout the retirement industry is causing many DC plan providers to be on the defensive, focusing on ways to avoid the next potential pitfall. And although providers may be trying, half of DC advisors report they are not getting enough support from providers with regard to the new rules and regulations. This perceived lack of support in a time of great change will undoubtedly affect advisor perceptions of and loyalty to the providers they work with regardless of the future of the ruling.
While many DC advisors agree with the overall concept and spirit of the DOL fiduciary ruling, the vast majority are nervous about the impact these new regulations will have on their day-to-day business practices. For example, as a direct result of the DOL ruling, 44% of DC advisors are altering their approach to rollover and distribution advice and 39% are spending more time thinking about compliance than about adding value for clients.
Tackling Uncertainty in the DC Market is a new white paper that explores the DOL fiduciary ruling’s impact on the DC market, providing detailed reactions from DC advisors, and offers a unique perspective from the DC plan participant view, examining overall awareness of the ruling and its effect on industry perceptions.