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Brokers drop as Acosta says fiduciary rule to start June 9

Analysts say the DOL decision not to further delay the fiduciary rule's June 9 compliance date was a blow to broker-dealers and asset managers.

By Sebastian Silva, Felice Maranz | Updated on May 24, 2017
Some analysts say the rule is likely to be softened in months ahead and its implementation may be temporary as it’s rewritten.

(Bloomberg) — Companies with exposure to the fiduciary rule, including Stifel Financial Corp., LPL Financial Holdings Inc. and Primerica Inc., fell after Labor Secretary Alexander Acosta wrote a Wall Street Journal op-ed saying the measure will take effect June 9 with no further delay. 

Analysts said that’s a blow to broker-dealers, asset managers and insurers, which had been lobbying Acosta and the White House to keep delaying the rule while rewriting it. Now the industry will have to absorb the heightened arbitration and legal risk it had hoped to avoid after President Donald Trump’s election in November, Capital Alpha Partner’s Charles Gabriel wrote in a note.

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