The DOL Fiduciary rule...nightmare or opportunity?

As of April, the Department of Labor released the new rules requiring advisers overseeing retirement accounts act according to Fiduciary standards to ensure they put their client's interest ahead of their own. The rule is "effective" 60 days after publication in the Federal Register, which was officially done on April 8th, 2016.

This has been in the works for a while, and opponents argue that it will put unnecessary restraints on advice and will make it more difficult for low and middle-income Americans to save, but the real impact of these new regulations will be on the Financial Advisory industry itself.

So, what happens when you and your competitors all get a stack of new government issued regulations, complete with restrictions on most of the products you offer and giving you enough paperwork to choke a goat? Well, a lot of your competitors are polishing off the old resume and trying to hunt down some corporate gig.

Now, as an Executive Search agency, we are happy to see a lot of solid candidates on the market, but I think we can all work together to create a real opportunity.  We here at Expedition have several clients that have been preparing for this for a while.  They have built an impeccable admin team, invested in a litany of tools and technology, and they have solid industry attorneys on staff to ensure compliance. So, the question becomes this; do we get crushed beneath the regulations, or do we use collaboration to rise above while we watch the industry shrink and the market grow? Nightmare or Opportunity?

To be honest, I really don't know how to predict the impact this is going to have on the Industry. I am curious what professionals financial advisors think. Let us know in the comments whether you think the new regulation will be beneficial for the industry in the long run, or this is another example of the government over reach. If you are interested in an introduction to our clients for collaboration, send me an e-mail at rbenjaminblair@expeditionexecutive.com