The Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) expects to propose a revised rule this August defining the term "fiduciary," according to the DOL's fall 2013 regulatory agenda.          

Also known as the conflict-of-interest rule on investment advice, the amendment will revise the regulatory definition of "fiduciary."

"It will be another year or so before a new definition of fiduciary would go into effect, but it wouldn't have much of an impact if the financial advisor is a registered investment advisor and is already taking on a fiduciary role," said Bruce Ashton, an attorney and partner with Drinker Biddle & Reath law firm. "If a financial advisor is not yet a fiduciary, it would behoove him or her to become one in order to prepare for the re-proposed regulations."

The reproposed regulation will also take into account ways advisors are compensated that frequently subject them to conflicts of interest.  

"It's a question of how financial advisors get paid," Ashton told Financial Advisor magazine. "A fiduciary has to have compensation that doesn't change based on advice or recommendations they make, whereas a non-fiduciary broker's compensation may vary from investment to investment."

Between now and the commentary period following August 2014, experts say it's unclear exactly what the reproposed regulations will cover.

"I think there will be a standard of care that ensures financial advisors and their firms are providing transparency to clients relative to fees and the services they provide, but it's unclear the direction the guidance will go," said Chris Silvaggi, vice president of retirement solutions at Great-West Financial.

In the meantime, it's the vagueness around the revised regulations that has financial advisors worried.

"It's anxiety provoking because it represents a change in how financial advisors do business, possibly their licensing requirements and the way they get compensated," said Ashton. "Whenever you expect a change on how you do business and it's unclear how to make those changes, it's anxiety provoking."

Perceived conflicts of interest is one area of concern that is expected to be addressed.

"No one has seen the reproposed regulations at this point, but it's a hot topic this year," said Jamie Kalamarides, senior vice president of Institutional Investment Solutions with Prudential Retirement. "Financial advisors can prepare by making sure they disclose how they are compensated to their clients and making sure they avoid any perceived conflicts of interest."

Eliminating any variance of compensation could be one way that the regulation will shake out among advisors.

"In addition to being duly licensed as a broker and RIA, financial advisors may need to create levelized compensation by working with providers, such as insurance companies, and making sure the commission that's paid is a fixed amount regardless of investments," said Ashton.

If required to levelize compensation under the reproposed regulations, advisor Scott Shellady said his clients would experience an increase in fees because compensation varies according to the amount invested.

"We don't have a set rate. So, our rates would go up if we had to levelize and that would impact our clients," said Shellady, CEO with Bradford Capital Management. "I am expecting rates to be three-fourths to 1.5 percent of all investments and would reckon the DOL would set them at the mid level of these two percentage points."

Independent broker-dealers, such as LPL, are already anticipating the rule will change by creating an RIA arm to handle their retirement plan business.

"They're also designating certain brokers to take on a fiduciary role and the retirement business is operated through those folks," Ashton added. "Creating specialized divisions is a prudent step to take for a firm that engages in a lot business in the retirement space."

LPL executives had not returned phone calls by press time.