If the April 2017 applicability date for the DOL fiduciary rule is unchanged by the incomingTrump administration, advisors will have to make a choice: whetherto pursue employer-sponsored retirement plan business or engage intraditional wealth management.

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That’s according to the fourth-quarter issue of The Cerulli Edge—Retirement Edition, in whichthe consulting firm says that all advisors serving the retirementmarket, whether they provide investment advice to small retirementplans (less than $50 million in assets), plan participants and/orhealth savings accounts, will become ERISA fiduciaries.

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Related: Fiduciary rule infringes on advisors'freedom of speech

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The rule, says Cerulli, brings IRAs under its jurisdiction, aswell as increasing scrutiny on the recommendation to move assetsfrom employer-sponsored retirement plans to IRAs.

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According to the report, rollovers are a substantial source ofgrowth in the $7.3 trillion IRA market; with rollover transactionsbeing scrutinized more closely, providers, asset managers, and,especially, advisors who participate in the retirement market “willbe impacted in myriad ways.”

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“Advisors accustomed to parlaying defined contribution planassets into traditional wealth management relationships via IRArollovers face new obstacles,” Dan Cook, associate analyst atCerulli, said in the report.

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Cook added, “To justify that an IRA rollover is in the bestinterest of a DC plan participant, advisors will face additionalcompliance and operational work.”

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Under the new rule, advisors and their broker-dealers will haveto evaluate whether it’s worth the additional time, effort andfiduciary liability to pursue rollover assets.

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In addition, some advisors will be told by their wirehouse orbroker-dealer to pick one or the other, rather than operate in bothDC retirement plan and wealth management channels.

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Cook continued, “Cerulli expects that advisors will increasinglyturn to fiduciary outsourcing providers either because their BDsprohibit them from acting in a fiduciary capacity, or because theylack the appetite or ability to take on the greater fiduciaryresponsibility currently set forth under the new regulation.”

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