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Extraction Summary
3
People
5
Organizations
0
Locations
1
Events
0
Relationships
3
Quotes
Document Information
Type:
A page from a financial conference report analyzing the impact of the dol's fiduciary rule.
File Size:
Summary
This document presents two charts from a BofA Merrill Lynch report, surveying the expected impact of the Department of Labor's (DOL) fiduciary rule on the brokerage and asset management industries. Overwhelming majorities (83% and 91% respectively) believe the rule will cause multiple meaningful changes, including pricing pressure and a shift from active to passive investing. The text also notes that the incoming Trump administration's stance on the rule is unknown, but a delay is considered the most likely action, drawing a parallel to a similar situation between the Bush and Obama administrations.
People (3)
| Name | Role | Context |
|---|---|---|
| President Elect Trump | ||
| President Bush | ||
| President Obama |
Organizations (5)
| Name | Type | Context |
|---|---|---|
| DOL | ||
| BofA Merrill Lynch Global Research | ||
| RIA platforms | ||
| Bank of America Merrill Lynch | ||
| Republicans |
Timeline (1 events)
2016 Future of Financials Conference
Key Quotes (3)
"Will the DOL's fiduciary rule cause meaningful changes to the brokerage industry?"Source
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Quote #1
"Will the DOL's fiduciary rule cause meaningful changes to the asset management industry?"Source
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Quote #2
"The view from the panel was that the most likely action over the next several months is that President Elect Trump delays the rule, though to repeal or change it would take work and new regulatory"Source
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Quote #3
Full Extracted Text
Complete text extracted from the document (1,935 characters)
Chart 73: Will the DOL's fiduciary rule cause meaningful changes to the brokerage industry?
90%
83%
80%
70%
60%
50%
40%
30%
20%
7%
7%
10%
3%
0%
0%
Yes, significant
pressure on
commission
revenues
Yes, a shift to
advisory and fee
based accounts
Yes, assets in
motion with some
to robo advisor
and RIA platforms
All of the above
No significant
impact
Source: BofA Merrill Lynch Global Research
90%
83%
80%
70%
60%
50%
40%
30%
20%
7%
7%
10%
3%
0%
0%
Yes, significant
pressure on
commission
revenues
Yes, a shift to
advisory and fee
based accounts
Yes, assets in
motion with some
to robo advisor
and RIA platforms
All of the above
No significant
impact
Source: BofA Merrill Lynch Global Research
• We also asked about changes to the asset management industry, positing "Will the
DOL's fiduciary rule cause meaningful changes to the asset management industry?"
Investors again expect multiple changes (91%), including an accelerated shift from
active to passive, further pricing pressure, and higher cost of distribution and
margin pressure. No respondents expect there to be no significant impact to the
asset management industry.
DOL's fiduciary rule cause meaningful changes to the asset management industry?"
Investors again expect multiple changes (91%), including an accelerated shift from
active to passive, further pricing pressure, and higher cost of distribution and
margin pressure. No respondents expect there to be no significant impact to the
asset management industry.
Chart 74: Will the DOL's fiduciary rule cause meaningful changes to the asset management industry?
100%
91%
90%
80%
70%
60%
50%
40%
30%
20%
10%
4%
4%
0%
0%
0%
Yes, an
accelerated shift
from active to
passive
Yes, further
pricing pressure
Yes, higher cost of
distribution and
margin pressure
All of the above
No significant
impact
Source: BofA Merrill Lynch Global Research
100%
91%
90%
80%
70%
60%
50%
40%
30%
20%
10%
4%
4%
0%
0%
0%
Yes, an
accelerated shift
from active to
passive
Yes, further
pricing pressure
Yes, higher cost of
distribution and
margin pressure
All of the above
No significant
impact
Source: BofA Merrill Lynch Global Research
• The panel noted that President Elect Trump did not address the Fiduciary Rule
during his campaign, so his view on the rule is unknown, but Republicans have
largely been against it. There is some precedence on what we could expect
President Elect Trump to do with the fiduciary rule. President Bush had
implemented an investment advice regulation that President Obama delayed
several times until it was finally withdrawn. The view from the panel was that the
most likely action over the next several months is that President Elect Trump delays
the rule, though to repeal or change it would take work and new regulatory
during his campaign, so his view on the rule is unknown, but Republicans have
largely been against it. There is some precedence on what we could expect
President Elect Trump to do with the fiduciary rule. President Bush had
implemented an investment advice regulation that President Obama delayed
several times until it was finally withdrawn. The view from the panel was that the
most likely action over the next several months is that President Elect Trump delays
the rule, though to repeal or change it would take work and new regulatory
50
2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
HOUSE_OVERSIGHT_014364
2016 Future of Financials Conference | 17 November 2016
Bank of America
Merrill Lynch
HOUSE_OVERSIGHT_014364
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