The U.S. Department of Labor’s fiduciaryrule is creating unprecedented levels of anxiety amongfinancial advisors, suggests new data from CogentReports at Livonia, Michigan-based Market StrategiesInternational.

The qualitative study, published as part of Cogent Reports’ "The Advisor of Tomorrow"report, shows that by and large, investment professionals arein agreement with the spirit of the Labor Department’s rule, whichwill require all advisors to IRAs and 401(k) plans with less than$50 million in assets to provide a fiduciary standard of care toinvestors.

But despite agreement with regulators’ intentions, advisors inall channels of distribution fear the rule will add to complianceburdens, encourage a fee-based model of compensationeven in circumstances when a commission-based structure may bestserve clients, and create the potential for “unlimited liability”among advisors.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.