Navigating the DOL Fiduciary Rule to Build Greater Efficiencies and Better Client Experiences

Navigating the DOL Fiduciary Rule to Build Greater Efficiencies and Better Client Experiences

Posted by Tracie Hummel on Aug 10, 2016 11:44:30 AM
Find me on:

DOL fiduciary rule changes*Post written by Shaun Christensen, IFS Account Director*

Prior to the Department of Labor’s final fiduciary ruling earlier this year, financial services industry stakeholders expressed concerns with the costs associated with complying with the requirement. In fact, a study conducted by the Financial Services Institute with Oxford Economics estimated that the new rule would cost nearly $3.9 billion to implement. Now, four months after the DOL issued its fiduciary rule, some of those concerns are being realized. We’ve seen a wave of announcements from some of the industry’s leading firms about the costs of the new requirement:

  • Ameriprise Financial spent $11 million so far this year on the DOL Fiduciary Rule, according to the company’s quarterly earnings results
  • LPL Financial is lowering pricing and account minimums and will no longer allow the purchase of share classes that have 12b-1 fees (and begin a credit back of 12b-1 fees on existing assets) in fee-based accounts, introduced a robo-advisor technology to support their advisors with small accounts, and has created a mutual fund-only account to help move more brokerage assets into LPL custody, according to the company’s quarterly earnings results
  • Cambridge Investment Research will spend in excess of $10 million as of the fiduciary rule’s implementation date next April, according to President Amy Webber.
  • Jackson National and Prudential cease sale of some L-share variable annuities
  • Commission revenue from alternative investments and variable annuities sales in the first part of the year were down dramatically over the previous year

In spite of the inevitable costs associated with any new legislation, the leaders of the brokerage and wealth industries are finding ways to turn compliance with the DOL fiduciary rule into a competitive edge. By using technology, they’re able to cost-effectively comply with the rule, while also making their business processes more efficient and improving the client experience

IFS has partnered with many industry leaders to help navigate the DOL’s fiduciary rule storm and is providing technology solutions to help improve or maintain their leadership in the industry. Here are just a few examples of how IF is helping our clients navigate the DOL fiduciary rule:

  • Enhancing the account and client onboarding process to not only include the BICE requirement, but creating a foundation of data and insight into the client’s financial records and personal financial goals. This ensures that the advisor does not carry a conflict of interest when providing financial advice. Establishing this data record prior to opening accounts is more efficient and client-friendly that struggling to find data later on.
  • Adapting the account maintenance process to capture and retain change information in product and payment structures
  • Helping firms make the transition of clients from commission-based accounts to fee-based options more efficient
  • Creating custom-tailored solutions for firms to create excellent client experiences

Technology is imperative to cost-effectively complying with the DOL fiduciary rule. With IFS, you’ll join the ranks of clients who’ve seen greater efficiencies and improved client experiences. Contact IFS if you want to be on the right side of the DOL fiduciary rule. To learn more about IFS’s approach to helping firms comply with the DOL rule, download a free copy of our webinar on the topic:

Download Now

Topics: Onboarding, Industry News

Welcome to the IFS Blog.

Subscribe to our blog for regular updates on business process automation, financial services and technology trends, news, information and more.

Our blog will give you first-hand access to: 

  • The latest in financial services and technology trends, news and resources
  • Helpful information so that you can make business processes more efficient
  • IFS product news and updates and company announcements

Subscribe to Email Updates

Recent Posts