Advisors to defined contribution plans are carrying more liability than brokers and advisors in the retail space during the transition period for the Labor Department’s fiduciary rule, according to analysts at Broadridge Financial Solutions, which provides communication services for 21 of the 25 largest plan record-keepers.
“The reality is as a (plan) advisor, if you have a conflict related to either proprietary product, forms of compensation, or limitations of access to products that you offer your clients, you need to be affirmatively disclosing those conflicts to your client now,” said Andrew Besheer, a project leader for Broadridge’s DOL Fiduciary Rule Solutions program, during a webinar hosted by the firm.
The rule’s Best Interest Contract Exemption, and other prohibited transaction exemptions, are scheduled to go into effect on January 1, 2018, meaning brokers and advisors in the retail market can receive commission-based compensation until then without incurring liability.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
