RIAs Run Risk of Falling Short on DOL Rule Compliance Some legal experts say RIAs are not doing enough to comply with the new rule, especially when it comes to rollover advice.
The Department of Labor’s new fiduciary exemption rule went into effect as scheduled in February, to the surprise of some who thought the Biden administration would stop the Trump-era rule from taking effect. And while much of the focus has been on how the brokerage industry will comply with the rule, some legal experts say registered investment advisors are not doing enough to comply, especially when it comes to rollover advice. One Charles Schwab executive called it a “sleeper issue” for such advisors.
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DOL Fiduciary Rule’s Impact Will Be Felt by Advisors, Brokers The Biden administration announced last week the fiduciary exemption would take effect as scheduled, but legal experts argue the rule has some serious teeth that will impact client relationships with advisors and broker/dealers.
As the Department of Labor said Friday that the fiduciary exemption finalized in the waning weeks of the Trump administration would go into effect Tuesday, Feb. 16, as scheduled, it also indicated that the department would release “related guidance” in the days ahead for investors, plans and providers alike. This has left industry participants and experts looking ahead to what form this guidance may take.