FROM THE BLOG
The DOL waiting game… 4 things you can do NOW as an independent advisor to begin to prepare
Posted by Tarah Carlow on March 17, 2016
A new initiative that is about to hit our industry full throttle is the new DOL rule that is imminent. Should we look at this with doom and fear and freeze in our steps? NO.
Many firms, like Prospera, are particularly favorably positioned to thrive in the post DOL world. Why? A lot of the big firms rely so heavily on revenue from the third parties of the world- the soft dollar revenue they take to promote a certain product. Some firms, like Prospera, have a better quality of revenue to begin with so right out of the box are better positioned to not only weather this, but thrive through this by continuing to build upon an already broad, non-proprietary bullpen of tools for our advisors and their clients.
Smaller firms (but not TOO small) are in a great position to move nimbly as soon as the rule is out without having to move the ‘mother ship’.
So, rather than sit on your hands, what can advisors be doing RIGHT NOW until the final ruling comes out? 4 things.
Here they are:
- Review your book of business to identify retirement accounts that are most likely to be impacted by the rule (IRAs, Retirement Plans, Education Savings Accounts, and Health Savings Accounts).
- Reach out to clients; stay in touch more often. Build or re-energize these relationships.
- Make certain client profiles are updated, including investment objectives and risk tolerance.
- Ensure clients’ investments match up to their objectives.
Did I mention RIGHT NOW? There will be enough to do once the ruling comes out-so, now, now, now, now and finally – now. We promise we will keep you abreast of any updates regarding DOL as they are made available. These are the things you can be doing in the meantime.
And we’re off,
