The current fiduciary rule is stuck in an odd sort of limbo. The rule has had its full implementation date pushed until July 2019, but the DOL has made very clear that it may never enact the rule, or at least take away its teeth—the BICE. While many may cheer this development, it is proving to have a dark side. That dark side is that numerous states, such as Nevada, are creating their own unique fiduciary rules. That means that if the federal government does not get a fiduciary rule in place, then advisors (and clients), could end up facing a mish-mash of state rules across the country.
FINSUM: This would be an unmitigated compliance nightmare and would seriously fragment the wealth management industry. Hopefully the SEC and DOL can come up with a compelling new rule.