Whether or not you are in favor of the DOL’s fiduciary rule, seemingly everyone in the wealth management will agree that reorganizing to comply with the rule has been a costly headache. But exactly how costly was not known, until now. SIFMA has come up with a figure for the total cost that firms will spend in complying with the rule: $4.7 bn. The DOL said it would only cost $2 to $3 bn, so costs have run about double what the agency thought, and that is just so far.
FINSUM: This is a huge figure, and it is only based on the current iteration of the rule. With all the back and forth going on over what its final form will look like, costs will continue to swell as things change.