The U.S. Labor Department’s proposed fiduciary rule would hit small brokers hard, a conservative think tank warned Thursday.
The American Action Forum, a Washington, D.C., group, estimates that compliance requirements would cost small broker-dealers nearly a quarter of a million dollar a year by requiring them to add two to three employees.
The DOL estimate is that the plan should increase expenses to the financial services industry by $5.7 billion over 10 years. The American Action Forum said the costs will ultimately come out of the wallets of clients.
The rule will actually hurt clients more than help, said the group.