Originally published in FTF News | February 22, 2017 | By Eugene Grygo
MyVest’s CEO Anton Honikman was interviewed by FTF News to get our take on the impact of the Trump administration’s attempt to slow down or halt implementation of the DOL Fiduciary Rule. While many are speculating on the future of the rule, we believe that ship set sail a long time ago, and while the headwinds may shift over time they will not stop the industry from reaching its ultimate destination — the new world of client-first financial advice.
Highlights from Anton’s interview:
“We think that the wealth management industry is already in the middle of a massive shift from a product-centric to a client-centric approach, and the DOL Fiduciary Rule has already accelerated that trend,” MyVest CEO Anton Honikman says. “By client-centric we mean advice and portfolios that start with the investor and not an investment product. This is advice that is holistic covering the entire household’s wealth and goals, rebalanced in a tax optimized way, personalized to each investor’s situation, and delivered digitally.”
Honikman argues that whether or not the rule is ultimately implemented, it has already had an impact over the past two years, such as:
- The market share for fee-based assets increased from 30% in 2010 to 38% in 2015, according to information from market research firm Aite Group;
- And major financial services firms are shifting their formerly commission-based IRAs to fee-based accounts, and some large firms are simplifying and lowering fees.
So, even though the Fiduciary Rule may die after its three-month limbo, as Honikman says, it may already have done some good.