Advisors Spent $595 Million Preparing for DOL Fiduciary Compliance, SIFMA Study Finds

Advisors spent $595 million preparing for June 9th DOL fiduciary compliance and are expected to spend over 200 million more before the end of 2017, according to a Deloitte study conducted for the Securities Industry and Financial Markets Association.

132,000 financial advisors participated in the study -- that represents 43 percent of the US’s financial advisors.

Study participants did say the money they’ve spent doesn’t put into account risks like litigation or regulatory changes.

The study found participants have spent nearly $350 million on human capital needs in relation to Rule compliance, which includes onboarding of FTEs and shifting current employees into surveillance, supervision and compliance roles.

According to the study, due to the fact certain rollover recommendations are now subject to the Impartial Conduct Standards, 100% of advisors surveyed said “significant resources were expended” to evaluate their rollover processes and if they would be allowed under the Rule.

Advisors also spent more than $185 million on technology to support the process changes and spending is expected to continue.

Kim Jong Un Orders More Rocket Engines, Warheads

North Korean leader Kim Jong-un has ordered scientists to step-up their production of more rocket engines and warheads. The Korean Central News Agency reported he placed the order after a visit to a state chemicals institute.

State news media also released images of what could be new missile plans. According to The New York Times, one of the images captured what could be a conceptual diagram for a submarine-launched missile that would have a longer range than previous designs.

Minimum Wage Hikes Lead to More Robots, Study Finds

Minimum wage hikes lead to more robots in the workforce, according to a National Bureau of Economic Research study. The study found from 1980-2015 minimum wage hikes caused low-skilled workers in automatable positions to lose their jobs in favor of machines.

According to CNBC, automatable jobs include positions like supermarket check-out clerks, who can be replaced by self- serve checkouts and assembly-line workers at manufacturing plants, who can be replaced by robotic arms.

The federal minimum wage is $7.25, but more than half of the states have higher minimum wages.

Woman Awarded $417 Million in Johnson & Johnson Baby Powder Lawsuit

A Los Angeles jury ordered Johnson & Johnson to pay $417 million in damages to a woman who says she developed ovarian cancer after using the company’s baby powder.

According to CNN, the 63-year-old Los Angeles woman, told the court she used the powder since she was 11 years old as part of her feminine hygiene routine.

According to the American Cancer Society, studies have been mixed on if talcum powder causes ovarian cancer. It has been suggested the powder might cause ovarian cancer if powder particles travel upward to the ovary during feminine hygiene routines.

The woman said Johnson & Johnson failed to adequately warn customers about the cancer risks of the baby powder.

Fox News reports Johnson & Johnson faces 4,800 similar claims nationally and has already been ordered to pay $300 million by juries in Missouri.

Johnson & Johnson says it plans to appeal the verdict.

US, South Korea Begin Military Drills Despite Threats From North Korea

The U.S. and South Korea began their annual military drills Monday -- a move that comes on the heels of tensions between the two countries over North Korea’s recent intercontinental ballistic missile tests and threats of being able to hit Guam with a missile.

The Korea Herald reports the Ulchi Freedom Guardian exercise is a computer-based drill and 50,000 South Korea and 17,500 U.S. troops will participate in simulating a war with North Korea.

CNN reports a day before North Korea warned the joint drills is “driving the situation into the uncontrollable phase of nuclear war” and the army “is keeping a high alert.”