DOL Fiduciary Duty Rule

The Department of Labor (DOL) Fiduciary Rule (the “Rule”) regulatory package was released on April 6, 2016. The DOL Rule significantly expands the definition of investment advice as it relates to employee benefit plans and individual retirement accounts, expanding the universe of individuals and firms who will be considered fiduciaries subject to the stringent fiduciary standards of ERISA and the Internal Revenue Code. Because a fiduciary is required to act in the “best interest” of the investor, firms have been working to revise their business models to demonstrate that the advice they provide to retirement investors is in investors’ best interest.

The Rule has withstood several legal challenges, a change in administration following the November 2016 presidential election, and a brief delay, becoming applicable on June 9, 2017. Additionally, an 18-month delay on requirements to comply with the remaining provisions in the Rule was approved by Office of Management and Budget on August 29, 2017, extending the applicability date from January 1, 2018 to July 1, 2019.

With ~50% of US retail financial assets in retirement accounts, the Rule has driven significant changes to product, pricing, compensation, compliance regimes, technology and operations practices at US wealth managers, asset managers, retirement platform providers and annuities manufacturers and distributors.

loading-player

Playback of this video is not currently available

7 Day Yield - Fate of the DOL Fiduciary Rule, plus impact investing

PwC's Arjun Saxena provides an update on the DOL Fiduciary Rule. Plus, PwC's Don Reed explains why impact investing is on the rise. Dr. Alexis Crow appears as our guest and shares other examples of where we're seeing a rollback in regulations.

 

How PwC can help

PwC is the industry leader for DOL Fiduciary Rule strategy and implementation and has helped a significant number of financial institutions develop and implement solutions to address their DOL challenges. We have a dedicated DOL practice composed of industry experts that are at the forefront of thought leadership, are familiar with the DOL’s perspective, and monitor how industry participants are developing solutions for the Rule.

Scope of services

Overall

  • Robust rule response strategy development
  • In-depth industry knowledge and insights on Rule implementation best practices
  • Dedicated DOL practice and engagement teams with significant expertise in wealth management industry and DOL Rule

View more

Impact assessment

  • In-depth economic impact analysis, including revenue, cost and money-in-motion impacts
  • Highly efficient baseline analysis and business/operations impact evaluation, including business strategy, products, services, clients, associates, operations and technology

View more

Best Interest Contract (BIC) Exemption and other exemptions

  • Customized strategic decision making framework
  • Focused executive workshops and working groups for decision making on use of BIC exemption and / or other exemptions
  • Target operating model design for contract delivery, disclosure delivery, dialogue model, supervision model, etc
  • Process optimization that may create synergies and benefit other businesses or processes
  • Business and technical requirements development
  • Effective support throughout the technology roadmap to implement the target operating models and business and technical requirements

View more

Product rationalization

  • Identification of high risk areas with regard to the Rule context
  • Strategies for new product development and / or new share classes development

View more

Pricing and compensation

  • Re-evaluation of pricing and compensation strategies and mechanisms to address conflicts of interest
  • Neutral factor framework to address differential compensation
  • Design and implementation of new product pricing, FA compensation and firm compensation strategies

View more

Program and project management

  • Significant program governance and oversight support
  • Executive reporting and communication delivery
  • Outstandingproject management expertise

View more

Contact us

Arjun Saxena
Principal, Financial Services Advisory, Asset & Wealth Management
Tel: +1 (212) 551 6411
Email

Dan Ryan
US Banking and Capital Markets Leader
Tel: +1 (646) 471 8488
Email

Thomas J. Holly
US Asset and Wealth Management Leader
Tel: +1 (410) 215 0627
Email

Julien Courbe
US Financial Services Advisory Leader
Tel: +1 (646) 471 4771
Email

Chris Joline
Principal, Financial Services Advisory, Insurance
Tel: +1 (646) 471 5659
Email

Lisa Herrnson
Managing Director, ERISA Advisory
Tel: +1 (646) 471 8227
Email

Follow us