When Donald Trump won the presidential election last year, there were big hopes that the financial industry generally, and advisors in particular, might see a big reduction in the regulatory burden that had expanded significantly under the Obama administration. However, the reality is that this year has seen high growth in compliance spending by advisors, with the average firm increasing its compliance budget by 9%. Despite the fiduciary rule being delayed, the amount of hours going into compliance hasn’t fallen. Some advisors are very upset that they spent millions complying with the rule, but that it has now essentially blown up.
FINSUM: We cannot fault the president or the current government for this, as most of what is being complied with is left over from the last administration. Nonetheless, it has still proven to be a royal pain for advisors.