Compliance issue, fee compression, and an increased investment in technology are the key concerns for financial advisers going into 2017 ahead of the implementation of the US Department of Labor (DOL) fiduciary role, according to a SEI report.
The survey, in which 275 financial advisers participated, found that the majority is equally (24%) concerned about two direct implications of the DOL Fiduciary Rule – fees and compliance, while their other concern is growing revenues.
Only 11% of advisers said that they are ready for the rule’s enactment in April, while 41% said that they are almost ready.
Also, 55% of advisers said that they plan to raise technology investment spending for the coming year.
Advisers also cited outsourcing non-client facing activities as a key focus for 2017, with 30% specifically highlighting legal and compliance as an additional area that they plan to outsource.
SEI executive vice president and SEI advisor network head said: “We believe advisors need to continue to prepare for the DOL rule despite current speculation that it will not come to fruition because of the incoming administration.
“These survey results demonstrate that the rule is impacting advisors’ considerations in several aspects of their business when looking at 2017, which is one reason we are seeing advisors re-evaluate their infrastructure, increase attention to client-facing activities and focus on the outsourcing of non-client facing activities.”