The Demise of the Fiduciary Rule is a Bonanza for Advisors
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The announcement that the Secretary of Labor must conduct a new economic and legal analysis of the fiduciary rule is a setback to those of us who care about investors. Many believe it is the opening salvo in an effort by the Trump administration to delay, gut or even eliminate the rule.
The notion that requiring retirement-plan advisors to place participants’ interests first is somehow bad for them is bizarre and deeply troubling.
Hidden in this adverse development is a potential bonanza for advisors. Here’s why.
If the fiduciary rule is implemented, every advisor to a retirement plan would be a fiduciary. Differentiating from your competitors will be difficult. Now, the competitive distinction is clear; You are a real fiduciary who is bound by law to place the interest of plan participants above your own. Your competition is not.
You need to focus on that difference at every opportunity.
Consider joining the Fiduciary Advisor Affirmation Program offered by the Institute for the Fiduciary Standard. For a modest fee, you can trumpet the fact that your firm commits to a lofty code of professional conduct. Firms that participate in this program will be posted on a registry that will be publicized to investors and the media.
This is the time to flaunt your adherence to the highest standards in your profession and to make it a centerpiece of your communications to prospects and clients. (Full disclosure: I am an unpaid member of the board of advisors of the Institute.)