Most advisors say the Department of Labor’s new fiduciary rule is restricting them from serving their clients’ best interests, according to a study by Harper Polling for the Financial Services Roundtable.
The survey asked 600 financial advisors across the U.S. about the fiduciary rule and only 12 percent said they believe the rule is helping them serve their clients’ best interests -- as the rule was intended to do. 37% of the advisors said the rule is impacting their work methods a lot, 36% percent said some. Advisors said there’s a lot more time wasted on paperwork, rather than on serving clients. The survey also found many advisors said they would likely have to abandon smaller accounts and clients will be slapped with additional fees on top of having fewer investment options.
The majority of advisors said they have received complaints from clients on the impacts of the fiduciary rule.