Impact of DOL fiduciary rule: small investors will lose access
April 5, 2016 by LifeHealthPro Editors
More than half (55 percent) of retail advisors believe they will have to drop or turn away small investors and half will stop handling small rollover business when the Department of Labor’s proposed fiduciary rule is implemented, according to a new LIMRA Secure Retirement Institute survey.
What is considered a small investor varies from advisor to advisor, but generally small investors have assets under $200,000. The LIMRA report reveals that 9 in 10 U.S. middle market households (with assets between $100k and $249K) have assets in a defined contribution plan or an IRA. And the majority of them expect to rely on those assets to fund their retirement.
Advisors believe the DOL fiduciary rule will have a significant impact. According to the survey, nearly half of advisors say the rule will discourage them from handling small rollover business and will require the advisors to spend more time to complete a rollover. However, 8 in 10 advisors believe the volume of rollover business will not be affected. Click HERE to read more…
