Predictably, experts clash on what the impact of either a Trump or Clinton win will mean for the fiduciary rule before it is slated to go into effect on April 10. Some believe that the presidential election's effect on its implementation could extend far beyond the rule's technical boundaries to Dodd-Frank regulation — as well as to all non-retirement accounts. If that's the case, non-qualified accounts could experience as profound a revolution as the one currently anticipated for retirement accounts.
Read on for more predictions.
Jefferson City, Missouri
I seriously doubt that a Trump victory will impact the implementation of the fiduciary rule.
The industry has spent millions of dollars gearing up to help advisers meet their fiduciary responsibilities under the DoL [rule]. The largest firms have already started to institute changes as [they relate] to smaller IRA clients. So my opinion is that the industry, led by the big brokerage firms and large bank programs, would not be leading the charge to reverse [the rule].
I also think it would be political suicide to fight to have it reversed. If it benefits the customer by having commissions reduced and conflicts of interest eliminated, I suspect [the rule] will move forward as planned on April 10, 2017. Politicians will not likely want to face the negative public outcry that would certainly happen if politicians tried to reverse course after the election.
To those of us who manage programs, I’m more concerned about how long this impacts the qualified money investor. The large firms seem to already be making changes to implement only one process for both qualified and non-qualified opportunities starting in April. This makes me think that, in 2018, we will be likely looking at the fiduciary rule impacting all of our business.