The fight over the fiduciary rule has been years long and has no clear winner. We do have an in-spirit version of the rule currently in place, but there are numerous efforts to overturn the whole package, and the full implementation of the rule will be delayed another 18 months. Despite this though, there is a clear winner with the DOL rule: Wall Street. However much firms protested the rule early on, the reality is that the DOL’s push has caused a massive migration of clients into fee-paying accounts, which offer more than double the revenue of commission only accounts. This has led to a surge in revenue for big brokers, but has actually led to lower pay for advisors themselves, as they are the ones losing out on commission Dollars and are not getting a slice of the bigger revenue pie.
FINSUM: The house is keeping a bigger cut than they use to, while brokers and their clients have less pay and less options. Hopefully the SEC will join up with the new leadership of the DOL and rethink this whole rule.