The new conflict of interest rules represent a sea change for the financial services industry. Make no mistake: this is, in fact, game-changing stuff.
Pete Swisher, Senior Vice President and National Sales Director of Pentegra Retirement Services, has updated his “Game Changer” series from a year ago. He has spent years studying and preparing for the issues surrounding the “definition of ‘fiduciary’” regulation. In “Game Changer, Revisited,” his most recent update, Swisher notes that any advisor or service provider whose business model depends either on variable or indirect compensation, or on the premise that one’s investment recommendations don’t cross the threshold into fiduciary status, should assume that their business model must change.
Advisors whose business models are predominantly fee-based will see less of a tectonic shift, but the reality is that most advisors, including fee-based advisors, are affected by these rules. None can afford to ignore the necessity of studying the new rules and reimagining the business model in light of the new realities. And, therefore, the service providers who rely on advisors will need to reexamine their offerings as well.
“Game Changer, Revisited” has been added to our DOL fiduciary rule resource center. Click here to download the report, and here for the resource center.
