Fidelity Investments Survey Finds DOL Rule Will Force Advisors Out of the Business

A new survey by Fidelity Investments has found that 10 percent of financial advisors are planning to “leave or retire from the field earlier than expected” because of the Department of Labor’s fiduciary rule and 18 percent are reconsidering their career choice. These results dovetail with a recent NAIFA survey of members working in the retirement space, which found that more than 15 percent will no longer provide retirement plan products or services because of the rule.
Only 24 percent of broker-dealers and 19 percent of brokerage advisors in the Fidelity survey said the DOL rule will have a positive impact on their businesses. NAIFA survey respondents were even less sanguine, with 57 percent of NAIFA members saying the rule will have negative effects on their businesses, 27 percent saying it will have mixed effects and 3 percent saying it will have positive effects.

Fidelity found that the rule is forcing two-thirds of advisors to re-evaluate the types of clients with whom they are able to work. Smaller clients are likely to lose out, as 54 percent of the advisors said they are likely stop working with smaller clients or transition them into different accounts. The NAIFA survey found that 24 percent of advisors expect to lose all of their middle- and lower-income clients, and 41 percent expect to lose some of them. An additional 17 percent of advisors in the NAIFA survey are not yet sure how the rule will effect their ability to serve smaller clients.


A LIMRA Secure Retirement study reveals that 54 percent of Broker-Dealers believe some of their advisors will leave the business because of the DOL rule. Two-thirds believe the rule will increase complance costs and those cost increases will be passed along to consumers.

  • Posted September 28, 2016 IN

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