President Trump is about to deal the financial services biggest Trump Card and abolish DOL….in my opinion. After years of planning for the most ludicrous change which, in most cases, hurt the small investor, sentiments are, DOL is DEAD ON ARRIVAL of our newest President, Donald Trump.
All indicators are pointing to a repeal of this rule and I, for one, am glad it is almost over. There are many other ways that the public can be “protected” from commissionable products, which, in many cases are a better choice for a client long term. Retirement assets often represent the largest cash asset that a client has and the attempts of the DOL were muddied with misinformation and hidden agendas.
I believe there is a place for level fees, which are legal for registered representatives to charge their clients in lieu of straight commissions, there is no need to have those assets moved to an RIA. The only challenge with charging a level fee is that it can, especially in the case of smaller clients, cause the client to pay substantially more over the long term. Most RIA’s HAVE a minimum account size, many starting at $250,000!
President Trump, stop building walls for a minute and repeal DOL, you will be doing many people, clients without your kind of money, a favor and they will thank you in the end. In the meanwhile, we are patiently standing by for the inevitable Death of DOL.