Its RIA vs. BDs on the Fiduciary Rule
The comment period of the DOL's most recent delay of the fiduciary rule has been getting, as usual, some very strongly worded comments. But one of the most interesting things to emerge has been the fissure between RIAs' view of the delay, and the opinion of broker-dealers. B-Ds are loudly in support of the delay, but RIAs say that pushing the rule farther out is likely to lead to confusion and additional costs for investors. Financial Engines, the giant RIA which manages over $100 bn, remains steadfastly in support of the rule, saying "A robust conflict-of-interest rule will help to promote the trend toward high-quality, low-cost, technology-based financial services and products that will make unconflicted advice increasingly cost-effective for advisers and accessible for investors of all means".
FINSUM : It is very obvious why broker-dealers are in support of a delay, but less obvious why RIAs are against one. Our own view is that RIAs should be happy the rule is being delayed, as the imposition of a weaker fiduciary standard would water down the brand the industry has collectively built for itself.
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