Katz dismissed concerns about the potential impact on small investors.
“We’re already seeing [advisors] supporting mid-income people,” Katz said, with hourly or retention-fee pricing. And the industry “is trying to get ahead of it. I mean, LPL [Financial] lowered their account minimums and fees even before this rule came out.”
Katz and Houlihan suggested that advisors use the “Fiduciary Oath,” a simple statement for clients, developed by the committee, that lays out the best-interests standard.
(See http://www.thefiduciarystandard.org/wp-content/uploads/2015/02/fiduciaryoath_individual.pdf )
“It captures the heart of what the DOL is trying to do,” Katz said.