Survey: Mass. investment advisers unaware of new ‘fiduciary rule’ impact

BOSTON – Massachusetts regulators say many registered investment advisers in the state aren’t aware of the impact the new U.S. Department of Labor so-called “fiduciary rule” will have on them.
The opinion is based on a state survey of registered investment advisers.
“While [the DOL’s] rule will go a long way in providing for the safety and protection of retirement assets for average investors, the survey found that the IAs who handle retirement assets covered by the rule do not believe the rule will impact them as they are already fiduciaries,” said William F. Galvin, secretary of the commonwealth. “As my office is the principal regulator of state-registered IAs, the survey results demonstrate a need for training, which this office will be providing for free to investment advisers providing retirement advice.”
The new labor rule, among other things, prevents certain types of advisers from receiving payments on investments that create conflicts of interest, unless first complying with protective conditions spelled out by the federal government.
The Securities Division of the Mass. Secretary of the Commonwealth’s Office last week announced survey results, showing a majority of registered investment advisers didn’t think the new rule would impact them, but were structured in a way that could be affected.
The Securities Division says it plans to provide trainings in advance of April 10, 2017 when the rule takes effect.

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