Advisors to defined contribution plans are carrying moreliability than brokers and advisors in the retail space during thetransition period for the Labor Department’s fiduciary rule, according toanalysts at Broadridge Financial Solutions, which providescommunication services for 21 of the 25 largest planrecord-keepers.

“The reality is as a (plan) advisor, if you have a conflictrelated to either proprietary product, forms of compensation, orlimitations of access to products that you offer your clients, youneed to be affirmatively disclosing those conflicts to your clientnow,” said Andrew Besheer, a project leader for Broadridge’s DOLFiduciary Rule Solutions program, during a webinar hosted by thefirm.

The rule’s Best Interest Contract Exemption, and otherprohibited transaction exemptions, are scheduled to go into effecton January 1, 2018, meaning brokers and advisors in the retailmarket can receive commission-based compensation until then without incurringliability.

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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.