The DOL’s Proposal Also Affects RIAs

The final version of the DOL’s proposal is expected in the next 30 – 45 days. It is expected to change the way advisors sell products in retirement accounts and decrease the commissions generated from those sales. There are advisors that have spent years building a recurring revenue business utilizing investments that pay a trail commission and the DOL’s proposal may force that business to change virtually overnight.  The solution, according to the DOL, is to do more fee-based business which has RIAs cheering as they believe they have the best business model for clients. However, the DOL’s proposal may also impact how RIAs service clients. If you are your own RIA, or considering forming your own RIA, then you will want to know how the DOL proposal may impact your business as well.

Reposted from Financial Planning Magazine, you can read the full article here.