NEWS TIPS  ·   Advertise  ·   Post Jobs  ·   About Us  ·   Contact Us  ·   Log In  ·   Register

Click to Zoom
Print Email
Jul 27 2017

ADISA and the Financial Services Roundtable to Study Early Effects of the DOL Fiduciary Rule

The Alternative & Direct Investment Securities Association, a trade association representing the non-traded alternative investment industry, is teaming up with the Financial Services Roundtable to help launch FSR’s industry-wide study to show the early effects of the Department of Labor’s fiduciary rule that began implementation on June 9th.

ADISA provided aggregate data on the nation’s advisor industry—both fee and commission-based financial advisors and annuity providers—to help FSR, who commissioned the study by Harper Polling.

According to ADISA executive director and CEO John Harrison, the survey sample of more than 600 was drawn randomly from all financial service professionals across the United States who provide advice to the nation’s retail investors. Thus, yielding a margin of error of ±4.0 percent on responses gathered by telephone and online interviews.



“The industry is in debt to the FSR for undertaking this study, which puts data to the anecdotal notion that the DOL fiduciary rule is not in the best interest of investors seeking to build financial security to last a lifetime,” said ADISA President John Grady, DLA Piper.

The fiduciary rule, which currently under review as directed by President Trump, seeks to eliminate conflicts of interest in the marketplace for retirement investment advice. Portions of the rule went into effect on June 9th while full implementation is slated for January 1, 2018.

The DOL recently issued a request for information seeking additional comment on whether to further extend the transitional period beyond January 1, 2018, and whether the fiduciary rule’s revised exemption structure should be modified.

According to FSR, the study’s sponsor, the full results will be released within the next two weeks as the data continue to be analyzed. Preliminary findings though have been provided to ADISA in order to provide immediate data requested by the DOL.

“We want to get this right and get the most accurate results possible; thus far, the topline results of our data analysis do indicate a substantial regulatory burden placed on financial professionals, and with no significant benefit to the retirement investor,” noted FSR vice president Jill Hoffman.

The SEC also issued their request for public comment on standards of conduct for investment advisers and broker-dealers that provide investment advice to retail investors. SEC chairman Jay Clayton recently agreed to work with the DOL on the fiduciary rule issue.

The results of the FSR/ADISA study are expected in early August.

The Alternative and Direct Investment Securities Association bills itself as the largest national trade association serving alternative investment and securities industry professionals who are active in offering, managing and distributing private and public direct investments. ADISA’s members are typically involved in non-traded real estate investment trusts, business development companies, master limited partnerships and private and public funds, 1031 exchange programs, energy and oil and gas interests, equipment leasing programs, or other alternative and direct investment offerings. The association was founded in 2003 and has approximately 4,500 members.

Click here to visit The DI Wire directory page.

Article by: The DI Wire


Share this article!

Print Email


Directory Spotlight





The DI Wire's Email Alerts