Regulatory Outlook | 09.15.21
Half of Firms Admit They're Just Getting Started on Fiduciary Rule Compliance
An informal InvestorCOM survey indicates that over 50 percent of broker-dealer and registered investment advisory firms are just getting started on complying with DOL's fiduciary rule, whose enforcement begins on 20 December. The prohibited transaction exemption (PTE 2020-02) says financial professionals must analyze each investor's current retirement plan or IRA, openly weigh alternative investments, and show that their recommendations are in investors' best interest. The other half of survey respondents said they "are almost" ready to get into compliance with PTE 2020-02, and InvestorCOM's Parham Nasseri said firms concerned about the deadline could use third-party software rather than attempt a manual process "to accelerate their compliance plans."
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