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ADISA Joins FSR in Major Industry Study

Jul 26, 2017

To respond to the DOL’s recent request for information on the effect of the DOL’s Fiduciary Rule, ADISA partnered with the Financial Services Roundtable to help launch its industry-wide study to show the Rule’s early effects. ADISA provided aggregate data on the nation’s advisor industry—both fee and commission-based financial advisors and annuity providers—to help FSR, who commissioned the extensive study by Harper Polling. According to ADISA Executive Director/CEO John Harrison, the survey sample of over 600 was drawn randomly from all financial service professionals across the United States who provide advice to the nation’s retail investors. Thus yielding a margin of error of ±4.0% on responses gathered by telephone and online interviews. 

“The industry is in debt to the FSR for undertaking this study, which puts data to the anecdotal notion that the DOL Fiduciary Rule is not in the best interest of investors seeking to build financial security to last a lifetime,” said ADISA President John Grady , DLA Piper. “While we are ultimately all in this to get good investment products to the investor, it looks like the current DOL approach will only limit choices and raise costs for millions of average income retirement investors,” said Catherine Bowman, The Bowman Law Firm, chair of ADISA’s Legislative and Regulatory Committee.

According to FSR, the study’s sponsor, the full results will be released within the next two weeks as the data continue to be analyzed. Preliminary findings though have been provided to ADISA in order to provide immediate data requested by the DOL. 

“We want to get this right and get the most accurate results possible; thus far, the topline results of our data analysis do indicate a substantial regulatory burden placed on financial professionals, and with no significant benefit to the retirement investor,” noted FSR Vice President Jill Hoffman. Further details and the complete results are expected no later than early August.