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.