It was 8:59pm when I looked up at the clock and I had one minute before I was supposed to call into our conference line and await the words of wisdom from our fearless leader, John Shin. The agenda for tonight consisted of Axianta Fiancial Partners Annual Kick Off Event, this year on January 14, 2017 in Oxnard, California.

We discussed the opening of a new office in Valencia, CA so if you live in Valencia, CA or near there, we’re coming! Also San Diego, January 19th there is a Super BPM, I will be posting the info to that on the events calendar so definitely check back with us to see when that info goes live. Anyone down in that region if you are available, highly recommend going to see John speak in person. There’s going to be a training in Utah coming up on Feb 4th, I believe its limited to SMD and above only. There was also a recap on the Think and Grow Rich Movie Project which I have included a trailer in my post below.

Then the magic happened, he got into talking about the Department of Labor Fiduciary Rule and what that means for the Financial Industry as well as for us who are a part of his team at Axianta Financial Partners. The good news is that this rule is not going to affect us in a negative way, bad news is I cant say that for everyone.

The overall compliance headache and expense the DOL rule will cause could even persuade older advisers to exit the business, years before they planned to, just to avoid dealing with the changes. That would worsen the nation’s overall shortage of financial advisers. The good news is that if they are getting out of the business because of this, well maybe they should be getting out. “Maybe their model isn’t bringing value to the consumer.”-Bernie Clark, head of Schwab Advisor Services.

The DOL rule will force financial advisers to satisfy the BICE conditions in order to sell variable annuities and indexed annuities in qualified accounts.

As a result, sales of these high-commission annuity products are expected to slow.

RIAs, who already are held to a fiduciary or “best interest” standard, will have small operational changes to make to serve retirement plans and IRAs. They’ll need additional documentation under the DOL to show how clients’ interests are being put first.

That could be challenging with 401(k) rollovers, for instance, if the fees the client will owe the RIA for managing the IRA will be greater than the existing plan’s fees. The DOL rule also incorporates a contract some have dubbed “BICE lite,” which fiduciary advisers may need to have signed by clients to transition retirement assets.

The cost of these changes could be a challenge for small RIAs, who will likely react by looking to merge with larger firms, a trend that’s been occurring in recent years anyway because of extra compliance costs due to other regulations.

Thats pretty much where I lost John, was when he started talking about this new regulation. For those of you in the Finance Game that are being directly affected by this in a NEGATIVE way, get in touch with us and we will gladly work with you on a plan to get prepared for this transition. Fill out a contact form, and someone from our team will get back to you. I want to help you save your business and most importantly help you fulfill your Fiduciary Responsibility in looking out for your clients best interest.

Thanks for your time and energy, I hope this training helps out and I would love to get feedback if you have any to offer. Best of Luck!
-Alex Romero
The Cyndkt