More hate it than love it, but it's not a landslide: Advisors are divided on the new fiduciary rule proposed by the Department of Labor.
That's according to a live webinar poll conducted by Pioneer Investments, which found that, although a substantial number of advisors remain undecided about the effects of the new rule on their business, many also believe it will help both their businesses and investors.
Attendees were asked how they thought the rule would affect their businesses, and 38 percent came down on the negative side, saying it would hurt it and drive profitability down.
Recommended For You
But 27 percent said it would help their business by leveling the playing field on retirement advice—and they could be right. All the headlines over the inherent and apparent conflicts of interest present when advisors counsel clients about retirement products has made many consumers wary and distrustful, and for such people the new rule would be a boon.
Not only that, but perhaps it might help with some of the image problems the financial industry has, considering that it's one of the least-popular business sectors out there—particularly among millennials.
Twenty-one percent of respondents in the Pioneer poll said the rule would make no difference to their business, and 14 percent weren't sure what to think.
When it comes to how the rule would affect investors, rather than their own businesses, advisors were still divided, though with less indecision. More (42 percent) felt it would negatively affect investors by increasing costs and limiting the availability of advice, while the number was also higher — 32 percent—who believed investors would be helped and that putting investors' interests first would cause better outcomes. Eight percent said it would be a nonevent and 18 percent weren't sure what the result would be.
Asked how they thought it would affect their IRA rollover business, 42 percent said it would have little to no impact and 28 percent foresaw a moderate to high negative impact. Eleven percent looked forward to the rule, saying it would have a moderate to high positive impact on their businesses, and 19 percent didn't know.
Feelings within the industry are running strong about the fiduciary rule, regardless of the side respondents are on. An earlier poll from Fi360 found that RIA participants came down heavily on the side of the rule. Participants in that poll were largely fee-only RIAs, while participants in the Pioneer poll were a mix of wirehouses, broker-dealers and independent advisors.
© 2025 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.
