The Fiduciary Rule is Final – Now What?
The Department of Labor’s (DOL) final version of the fiduciary rule comes in at over 1,000 pages and is estimated to cost over $31.5 billion and require nearly 57,000 paperwork burden hours – even by DOL’s conservative estimates. The fiduciary rule is the most expensive rule, proposed or final, in 2016 so far.
DOL made significant strides in explicitly defining who and what are covered under the rule and thus with whom and when a fiduciary duty is triggered. DOL also eased up on some of the disclosure requirements from the proposed rule that would have created substantial compliance costs.
Although DOL attempted to make the BICE more workable by eliminating its qualifying asset class list and giving advisors leeway as to when they should execute the BICE, it still remains the most burdensome component of the rule and could drive many of the lowest income retirement savers out of the investment advice market.