The Rule Is Coming! The Rule Is Coming! Prepping for Compliance

By ASPPA Net Staff • November 01, 2016 • 0 Comments
Regulatory Paul Reveres are sounding the clarion call about the impending effective date of the Department of Labor’s (DOL) fiduciary rule. It’s not exactly a middle-of-the-night surprise, but it is coming. A recent paper offers ideas on preparing for the rule’s April 10, 2017 effective date.

In “Mapping a Plan to Master DOL Compliance,” Broadridge Financial Solutions writes that the rule “is expected to have the biggest impact on financial services since ERISA was enacted in 1974” and makes suggestions regarding not only how to prepare but also how to turn a compliance challenge into a competitive advantage.


Get the House in Order


The paper argues that part of preparing is to look at, and adjust, aspects of current business operations. Broadridge suggests that service providers need to look at their fund lineup and perform an in-house assessment of compensation practices and to devise a “simple, clear and bullet-proof approach” for assessing the current share class of a fund against the best classes available for conversion.

Point-of-Sale Tools

Broadridge argues that it will be especially important for a service provider to help advisors with the following functions:

  • rollovers from 401(k)s to IRAs;

  • tools to determine mutual fund suitability; and

  • updating and improving communications and the information provided, and how it is provided.

Ongoing Compliance Management

The paper argues that once the rule is implemented, a firm would be wise to not regard its compliance to be complete after it makes the initial adjustments and changes it may need to make. Rather, it says, a firm needs to make managing and mitigating risk a continuous process, and build compliance and transparency into all processes that reach customers.