A new survey finds that 87% of advisors are considering changes to how they do business ahead of the implementation of the Labor Department’s fiduciary regulation.
The third-party survey of 622 financial advisors (representing a mix of distribution channels, tenure and production) commissioned in May on behalf of Nationwide notes that while advisors provided varied perspectives regarding how they plan to change their mix of products sold, 43% may plan to expand services offered to more holistic planning and a quarter (26%) may plan to focus on non-qualified accounts.
That said, fewer than half (42%) of advisors say they are aware of their firm’s timeline for implementation with the fiduciary regulation, or what training or support the firm will provide, while only a third (33%) are aware of their firm’s new compliance procedures.
BICE Uneasy?
The Best Interest Contract Exemption (BICE) continues to be an area of great concern for firms and advisors; less than a quarter (23%) of advisors are aware of their firms’ plans with respect to adoption of (the BICE to sell variable compensation products. At the same time, 78% identified the BICE as one of the greatest areas of impact to their business.
The Nationwide survey found that advisor respondents consider themselves to be at least somewhat knowledgeable about:
- 82% - Fiduciary requirements
- 76% - Products subject to fiduciary standards
- 76% - Fee/compensation disclosure requirements
- 73% - The Best Interest Contact Exemption (BICE)
- 69% - What is considered advice vs. education
- 64% - Grandfathering provisions/conditions
- 64% - Levelized compensation requirements
