Panel discusses fiduciary rule’s impact, tax reform at IPA Summit

The potential effects and industry responses to the Labor Department’s fiduciary rule were addressed along with tax-reform issues in a panel including partner organizations of the Investment Management Program at the IPA’s 2016 Executive Leadership Summit, held in Washington, D.C., on Tuesday.
Dale Brown, president and CEO of the Financial Services Roundtable, discussed his assessment of the Labor Department’s final fiduciary rule.
“This industry certainly at least wins to live another day,” because its advocacy led to the elimination of a list of specified assets that could be sold to holders of individual retirement accounts, he said.
Brown said it’s too early to understand the fiduciary rule’s full impact, although the Labor Department appears to top the list of “winners” in the aftermath, because it emerged with a rule that will have a dramatic near-term effect in how retirement is given.
“They got their way, by and large,” he said.
FSI had declared the rule “unworkable” after analyzing it last year, but Brown said some changes are “encouraging” and that the “larger players in the industry they have the resources and wherewithal to figure out how to operationalize it.”
The rule’s “biggest looming unknown” is the liability risk that could result, particularly from such aspects as the rule’s best-interest contract exemption, Brown said. And another major concern is how small investors will …