A new survey released Wednesday by the Financial Services Institute suggests that more than three-quarters of advisors believe that a deal will emerge to avert the fiscal cliff - but they're also concerned about what will come of the DOL's quest for a Fiduciary Rule.
The FSI polled nearly 2,500 independent financial advisors on issues including the “fiscal cliff,” the economy, taxes and other factors impacting their Main Street clients. This poll expanded on the polls FSI conducted in February and August with its financial advisor members.
According to poll results, financial advisors overwhelmingly believe (79 percent) that a deal will be reached averting the fiscal cliff. A significant majority of respondents (72 percent) believe that a deal will include not only higher marginal tax rates for “wealthy Americans” but will also include curbs on deductions. Nearly all financial advisors (90 percent) think a fiscal cliff deal should include both fundamental tax code and entitlement reforms. Over half also responded that the capital gains tax should remain at its current rate of 15 percent.
Asked whether or not increased regulatory and compliance requirements – enforced without cost benefit analysis – have resulted in better service and protection for investors, only 5 percent responded they did.
“With the election behind us, all eyes are now on Capitol Hill and the White House as fiscal cliff talks continue,” said FSI President & CEO Dale Brown. “Our independent financial advisor members have a unique vantage point on these issues as they work closely with Main Street American investors on a daily basis. While they recognize the need for compromise and reforms in order to make our country financially sound, they also see how many of these significant changes will impact their clients’ ability to save for retirement, pay for their children’s education or care for aging parents.”
Financial Advisor opposition to the Department of Labor’s fiduciary definition proposal has increased over the past year. This latest poll found that 91 percent oppose redefining the definition of fiduciary for financial advisors, up from 89 percent in August and 72 percent in February of this year. The redefinition would ban the earning of a commission on IRA advice, pricing millions of middle class investors out of the market on affordable advice.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
