(New York)

The fiduciary rule is in an odd sort of limbo. Despite being seemingly dead from a rule-making point-of-view, it is still very much alive as a practical rule that needs to be abided by even if it is not in full force. But is still surprising to learn, especially given all the hype over the rule’s possible dissolution, that 42% of all advisor-held US assets under management are now subject to the fiduciary rule. That figure is up from what would have been 24% in 2005 and 33% in 2010. The growth has come from the large number of firms seeking to grow their fee-based managed account programs.

FINSUM: That is a quite a high proportion of assets. We hope the DOL rule will not be implemented and the SEC will come up with a more effectual version.

(New York)

The Broker Protocol just suffered another loss. Despite Merrill Lynch deciding to stay in the agreement, the loss of Morgan Stanley and UBS appeared too much of an enticement, and Citigroup has now departed. Citigroup has about 1,000 advisors across the country, and the bank says that leaving the Protocol will allow them to “continue to invest in our growing team of award-winning financial advisers”.

FINSUM: So MS, UBS, and Citigroup are now gone, with ML and Raymond James saying they will stay in. One side is eventually going to win. We think the leavers will eventually cause MS and RJ to leave.