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Fiduciary Rule FAQs

Department of Labor releases its first wave of FAQs on the fiduciary rule, baby boomers seek more advice from advisors than millennials and CentSai launches experts section.

Questions answered.

On Thursday, the Department of Labor released answers to 34 frequently asked questionsregarding its forthcoming fiduciary rule. The FAQ addresses topics ranging from implementation for companies still coming into compliance, language of the best interest contract exemption (BICE) and how it affects advisor compensation, and when advisors have to comply with the conditions of the new BICE and the principal transactions exemption. DOL Assistant Secretary Phyllis Borzi said this was just the first wave of FAQs and that there are two more planned. In a blog post, Borzi said, “These questions are an important part of the regulatory process as they allow the department to clarify important parts of the rule, and head off misunderstandings that could lead to bad results for retirement savers, or financial services professionals.”

Investors Lean More on Advisors as They Age

Listen up, you might learn something. | KatarzynaBialasiewicz/iStock/Thinkstock

As wealthy investors get older, they’re more likely to lean on advisors for financial advice. Fifty-eight percent of wealthy baby boomers are most confident in the financial advice of a wealth advisor, compared to just 8 percent of wealthy millennials, according to a new survey by SEI. The survey, which focuses on Americans with an average of $27.7 million in investable assets, found that 57 percent of millennials would rather get advice from family than a wealth advisor. Millennials are also more likely to think short-term, despite their longer time horizon. Only 28 percent of millennials are committed to long-term goals, compared to 52 percent of boomers. “There is a level of instant gratification and a false sense of control when you focus on short-term goals, and we see that manifest itself in the approach wealthy millennials take to investment management and measuring performance,” said Jeff Ladouceur, director of SEI Private Wealth Management.

CentSai Experts Gives Financial Advisors Access to Millennials

CentSai, a financial wellness website and "community" aimed at millennials, has launched CentSai Experts, an opportunity for financial advisors to reach this coveted demographic. CentSai Experts includes blogs written by qualified, vetted and credentialed financial advisors on topics like education planning, retirement, insurance and risk management, savings and credit repair. Experts include advisors, lawyers, therapists, educators and financial coaches who are selected based on their qualifications and ability to help the audience. None of the experts pay to be included. "With CentSai Experts we are helping to create a safe place for millennials to learn about finance directly from experts," CentSai CEO Co-Founder and Chief Executive Arindam Nag said in a statement. "Advisors can showcase content, their views, for free and giving millennials the chance to get to know them and see if they are someone who can help them." To apply to join the group of more than 100 advisors already labeled as "experts," contact Peter Neeves, Expert-in-Chief at CentSai Experts at [email protected]

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