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Survey shows compliance costs on the rise


A poll by WealthManagement.com shows that firms have increased their compliance budgets by 9 percent on average. The publication polled about 65 compliance professionals at both broker/dealers and RIAs. One compliance specialist suggested that money is primarily going toward issues such as compliance with the DOL’s fiduciary rule and cybersecurity. Read the details below. Also, the DOL’s fiduciary rule has prompted more interest in “new” types of annuity products, such as structured variable annuities, reports Financial Planning. In addition, there has been growth in the area of fee-based and fixed index products, experts from LIMRA and IRI told the publication. See the full story below.

Advisors Paying More for Compliance

By Diana Britton

Source: WealthManagement.com

When President Trump was elected, some broker/dealers and advisors thought it would usher in an era favorable to financial services, with a pullback in regulatory reach and a return to a “friendlier” legal environment for small businesses. “I think everybody said, ‘All this money that I’ve put into compliant systems and people and process, I’m going to be able to cut back on,’” says Alan Halfenger, partner and head of the global diversified financial practice at ACA Compliance Group. “Right off the bat that wasn’t true.”


New annuities sparked by fiduciary rule ‘disruption’

By Tobias Salinger

Source: Financial Planning

The fiduciary rule has helped drive a slump in annuity sales, but products emerging in its wake could reverse the downward trend, experts say. The space has seen big changes. In the third quarter, sales dropped to their lowest level since 2001, according to the LIMRA Secure Retirement Institute. Fixed sales outpaced those of variable annuities for the sixth straight quarter — the longest streak in 25 years, the industry research organization says.


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