The ATEL Monthly

Forecasting the Impact of the DOL Ruling

This past week Investment News reported that the DOL fiduciary rule will cost the securities industry $11 billion by 2020 with independent broker-dealers projected to suffer a 22% loss in revenue. According to the study from consultant A.T. Kearney, the increased regulation on advisory fees and the market shift to robo-advisory will affect a decline of $350 billion in assets over the next four years.

A recent Fidelity survey reveals a number of advisors see opportunity in the rule. Financial Advisor reports that according to the Fidelity Survey, two-thirds of the respondents said they will restructure and let go of smaller clients. 36% say they are planning on adding an automated investment platform.

Another study from LIMRA Secure Retirement reported that over 50% of broker dealers surveyed expect their advisors will retire early. The LIMRA report also stated that over 75% believe the risk of litigation would increase with seven in ten expected to restructure fees and compensation practices.