According to retirement industry experts, the new DOL Fiduciary Rule is not expected to be released until the first quarter of 2023 due to two ongoing and related legal cases. The rule, which aims to create a universal fiduciary guidance standard for financial professionals, was previously expected to be released in December. The original Fiduciary Rule proposed under the Obama administration, was overturned by the Fifth Circuit Court of Appeals in New Orleans citing that the DOL's execution of the rule amounted to "an arbitrary and capricious use of regulatory power." Under the Trump presidency, the DOL released PTE 2020-02 in December 2020, allowing investment advice fiduciaries to receive payment in connection with rendering fiduciary investment advice. The Biden administration allowed that regulation to proceed and was expected to be published next month. However, the Federation of Americans for Consumer Choice (FACC) filed a lawsuit in federal court in Dallas claiming that the DOL does not have the jurisdiction to enlarge the list of advisors who are required to serve as fiduciaries for pension savings. Another lawsuit was filed by The American Securities Association in a federal court in Florida arguing that the rule breached the regulations requiring a period of public input.

Finsum:The release of the new Fiduciary Rule is facing additional delays as the DOL fights two separate, but related lawsuits.

According to a recent survey by Broadridge Financial Solutions, 67% of financial advisers are using alternative investments such as real estate investment trusts and private funds, compared to 59% in a previous survey taken earlier in the year. Of the 400 advisors surveyed by Broadridge, more than half said they plan to increase the use of alternatives over the next two years over traditional assets such as stocks and bonds. However, the advisers also noted their disappointment in the available offerings, with just 27% saying they are very satisfied with the options available from asset managers. Among the issues leading to this disappointment are too few choices, too much paperwork, and compliance and regulatory concerns. As per the reason for the increased interest in alternatives, advisers cited diversification, followed by non-correlation with equities. According to the survey, the alternatives that advisors were most interested in were REITs, commodities, private equity, hedge funds, and private debt.

Finsum: With investors concerned over steep portfolio losses, advisors are showing an increased interest in alternatives such as REITs, commodities, private equity, hedge funds, and private debt.

Seems advisors are grooving on model portfolios. 

Why are they among the popular kids on the block?

Well, with the growing commoditization of portfolio management, the portfolios are viewed as an effective means by which to abet the ability of advisors to effectively serve clients and foster the growth of their business, according the latest Cerulli Edge—U.S. Advisor Edition, reported lifehealth.com.

“This saved time can be put toward client-facing activities, a particularly important activity, for example, for younger advisors that are focused on asset gathering and building a book of business,” said Brad Bruenell, associate analyst, the site reported

Then there’s the flexibility of the portfolios. Based on the circumstances of individuals and advisors and their practices, the way fit an advisors’ practice can vary – and in no small way, according to fundssociety.com.

And in the category that some things are downright worth the wait – even if it can be a bit maddening at times – the industry’s gradual segue toward a financial planning oriented service model will represent a potent catalyst toward the adoption of model portfolios, said Cerulli.