Survey: Providers Still Sorting Through Fiduciary Reg Implications
A new survey
of 117 retirement plan service providers by the SPARK Institute found that nearly 80% are still evaluating risks and requirements of the regulations (one wonders how that isn’t 100%), and 60% indicated that key parts of the regulation are still not clear (ditto).
Indeed, the survey finds that many are at a crossroads of sorts; 14% of the firms indicated that they would become a fiduciary for the first time under the new regulations, while 23% would continue to be a fiduciary, and 30% said they planned to continue under a non-fiduciary status. That said, more than a third (34%) of firms indicated that they are unsure which direction to take.
Not surprisingly, considering the final regulations
are just a couple of weeks old, 75% are watching to see how their peers are interpreting and addressing the regulation, and nearly half (49%) of the survey respondents say they are looking for guidance from industry organizations.
Most (80%) indicate that they want to understand how the regulation will change the competitive landscape, and at this point just 40% are actively looking at new product ideas as a result of the regulation.
The survey, which polled the industry and SPARK members, was co-authored by Oculus Partners.