Fighting DOL-related Fear with Technology

Fighting DOL-related Fear with Technology

Posted by Tracie Hummel on Sep 30, 2016 3:23:31 PM
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generic_business_picture.jpgWhile the Department of Labor’s Fiduciary Rule was created to protect investors, it has left advisors and their firms frustrated, fearful and unsure of how to proceed. A recent InvestmentNews article reported that broker-dealers are opting to no reveal new DOL-compliant commission schedules out of fear that advisors would bolt. Similarly, an OnWallStreet article published on Wednesday cited a Fidelity study which showed that one in five advisors are reconsidering their careers. 

The same OnWallStreet article spelled out, quite clearly, the source of frustration, fear and uncertainty: “The fiduciary rule is not only upending how compliance departments operate; it’s left some advisors wondering how they’ll thrive in a post-fiduciary rule.”

At IFS, we have a unique perspective since our job is to give financial services firms, including advisors and compliance departments, the tools they need to best serve their clients. Under the new rule, advisors essentially have four options for ensuring that accounts are DOL-compliant:

  1. BICE
  2. Convert to a fee-based account
  3. Transition account to a robo-advisor
  4. Close the account

In order to equip advisors and compliance professionals with the tools they need to succeed in the new regulatory environment, we’ve developed the DOL Advisor Toolkit. In addition to account review, reporting, documentation and communication capabilities, the DOL Advisor Toolkit enables advisors to automate the execution of any of the four aforementioned compliance actions. 

Between now and then, we will be embarking on a blog series, focusing on each of the compliance options, how our solution allows advisors to automate them, and the opportunity behind each. 


Topics: DoL

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