2016 SIFMA Mutual Fund Roundtable

On November 9th, 2016, Gartland and Mellina Group was invited to the SIFMA Mutual Fund Roundtable in St. Louis to discuss the impact of the Department of Labor (DOL) Fiduciary Rule on the industry. The event was held at the Stifel offices and had 17 broker dealers represented.

Members from the Wealth and Investment Management practice at GMG attended and presented its analysis of the DOL rule and key strategic impacts and considerations. The final rule, released in April, 2016 sets a new standard for advice given to retirement investors. The final rule has changed the definition of a “fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA) to expand the class of persons and entities that would be subject to strict fiduciary duties and prohibited transaction rules under ERISA and the Internal Revenue Code. The rule impacts approximately $19 Trillion of ERISA/IRA assets across the industry.

GMG discussed the immediate and strategic impacts of the DOL rule to broker dealers, clients and the Mutual Fund industry including key trends that have been accelerated by the rule – brokerage to advisory, goals based wealth management / financial planning, product pricing changes and innovation and digital / robo-advisory. The new fiduciary standard becomes effective April 10th, 2016 and full compliance with the rule is required by January 1st, 2018.

GMG is currently working with the product, business, legal, compliance, operations and technology divisions of several Wirehouses, IBDs, and Insurance/Annuity Providers to assist in the implementation of the DOL Fiduciary Rule. This includes the development of their target operating models and execution of key components of the BICE (Best Interest Contract Exemption).


Gartland & Mellina Group — A Management Consulting Company