There’s no time like the present to prepare for an approaching regulatory sea change—something advisors should keep in mind as they get ready for implementation of the DOL fiduciary rule.
With fewer than six months remaining before the U.S. Department of Labor begins to enforce its more stringent fiduciary standards for advice within retirement accounts, two advisor support firms—AssetMark and fi360—are revamping their fiduciary education tools to address needs within the industry.
AssetMark in Concord, Calif., has launched the “DOL Countdown to Readiness Campaign,” a web-based effort that includes informational resources, tools and educational webinars for advisors.
The central part of AssetMark’s offerings is a self-assessment tool where advisors will be able to gauge their readiness for the DOL rule’s implementation, says Matt Matrisian, senior vice president of strategic initiatives at AssetMark.
“We’d like the advisor to understand where they have exposure within their business to the new regulations,” Matrisian says. “We’re asking about their asset makeup, and whether any portions of their revenues are being driven by individual products, or by a myriad of products and compensation types. We also look into complexity—do they have a lot of small clients, is their business concentrated—how difficult will the transition to comply with this rule be moving forward.”
AssetMark’s offerings also include web-based instruction and guidance on client segmentation to prioritize transitions from commission-based accounts to fees, tools to calculate changes to firm revenue, a guide to help advisors decide whether to “fire” their small-account clients, a guide to help advisors understand what kind of communication is permissible with their retirement clients, and examples of how and when to use the fiduciary rule’s exemptions, including the "best interest contract."
In addition to a “microsite” within the AssetMark website that contains written and visual materials, the company is offering webinars for advisors seeking further instruction and guidance.
Matrisian says that AssetMark’s services are mainly informative, a response to what he sees as widespread confusion about the new regulations, what changes will be necessary and who will have to make those changes within the industry.
“Advisors are looking for direction and certainty, especially from their broker-dealers or custodians, but in many cases they’re left waiting for policy to be cleared by a compliance or legal department—even now as we’re approaching the rule’s enforcement,” says Matrisian.
Matrisian says that AssetMark’s first webinar offered as part of the program, held earlier in October, attracted more than 500 advisors.