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7 actions to demonstrate compliance following the DOL fiduciary rule

May 4, 2016

These moves will help structure your firm to meet the Department of Labor’s conflict-of-interest regulations

May 3, 2016 @ 1:54 pm | By Blaine F. Aikin | Investment News

Sales and advisory organizations are fundamentally different. That is the premise of the Labor Department’s new conflict-of-interest rule. They have different priorities, which shape the culture and practices that exist in each. Consequently, they must be regulated differently and should be distinguishable to the public.

Advisory firms (whether in law, medicine or financial services) must be structured to optimize client outcomes, even as they seek to operate profitably. Sales organizations are structured to maximize profitability, even as they seek to produce positive customer outcomes. The priorities of these businesses are reversed. Advice is inherently a fiduciary function, sales is not.

YOU’LL NEED EVIDENCE

The conflict-of-interest rule is intended to help make sure professional advisers operate their businesses to optimize client outcomes: They must deliver objective, competent advice by design. If your actions as an adviser are ever brought into question, you will need to be able to show evidence of well-defined, consistently applied decision-making processes that are grounded in fiduciary principles and deeply ingrained in the culture of your business.

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Second Annual Blue Vault Broker Dealer Educational Summit 2016
2016 Broker Dealer Educational Summit 2016
May 30, 2016

Best Due Diligence meeting in the industry. No sales pitches, senior level decision makers, meaningful discussions and the Broker Dealer networking sessions were especially useful. Thanks to Blue Vault for raising the bar!