Department of Labor Ruling Impact
Department of Labor Ruling Impact

RIA Trend Report: Department of Labor Ruling Impact

Nearly two-thirds of RIAs report being very prepared to comply with the ruling while only 3% report being not very prepared.

In light of the recent Department of Labor fiduciary rule, in this year’s survey we included questions regarding the impact on advisors’ practices. As seen in Figure 9, nearly two-thirds of RIAs report being very prepared to comply with the ruling while only 3% report being not very prepared. Arguably, the new ruling has a greater impact on IBDs and the preparedness responses may indicate that RIAs, as a group, are better positioned to handle the change. In examining the responses to how the ruling will impact advisors’ businesses in Figure 10, we note that most of the impact will be felt in the form of increased paperwork, more complicated compliance, and changes to policies and procedures. Given those responses, it comes as no surprise that one-third of respondents expect higher costs associated with compliance. Nearly 30% of RIAs report that the DOL ruling will have no effect on their businesses, indicating that many advisors were already managing their operations consistent with the new guidelines.

 

Read the Full RIA Trend Report: Practice Management & Operations

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