In the United Kingdom, online investment sellers are expected to be the short-term winners as clients are expected to balk at paying overt fees and turn instead to online platforms that sell investments without advice.
“A lot of financial firms in the United States are already being squeezed financially,” Anderson says. “Now they will have to set up new reporting and compliance operations. Also, the regulations in the United Kingdom were phased in over three years. Here it is expected to be done more quickly. We do not know which advisors will be grandfathered in.
“The DOL fiduciary rule is not the last we are going to hear about changes,” he also warns.