It is my opinion that the DOL/Fiduciary rule will be postponed and eventually over-turned.
I have been discussing this with attorneys, consultants and regulators. President-Elect Trump, through his team, let us know that the rule is (as an article described it) a "gonner." Either the Republican controlled House and Senate will "re-pass" the bill repealing the rule, or President Trump could simply have the ruling postponed pending further research as to the effect on consumers and our industry.
Court cases… there are still 2 more to be heard.
NAFA is appealing, and we have yet to hear the ruling on the Market Synergy case in Kansas. The judge could "order a stay of execution" and file an injunction halting the ruling pending further studies. Or, in the case of the Kansas case, just move FIA's over to 84/24 and eliminate the need for the BICE.
What about IMOs filing for Financial Office/Institution status?
The DOL was leaning towards giving the IMOs "possibly" some different type of signing rights, and not make them a Financial Office. But, my question is this, with Mr. Perez and the rest of the DOL staff on the way out, do you think they will even take time to address that particular issue? I don't think so.
Let's not forget Mary Jo White, head of the SEC.
She was charged with coming up with a fiduciary rule and was run over by the DOL. She is working on this, but it is one to two years out.
Bottom line… I believe that the DOL/Fiduciary rule will be, at the least, postponed for one to two years and never see the light of day in its present form.
What does this mean for you and for The Ohlson Group?
First off, those IMOs that filed for Financial Office/Institution status also got the “election surprise”. These IMOs called agents and said that firms like The Ohlson Group won't be around after the DOL. On the contrary, The Ohlson Group, and other boutique organizations will be around for a long time and will be able to continue to provide the best in support and products. The days of "fear mongering" are over. But, what if I am wrong? We at the Ohlson Group have back-up plans in place, and will be able to continue to facilitate your qualified business. So, pack your worries and troubles away.
Will this change the way we do business in the future?
We will all be working in an industry where the carriers and various regulators will expect and demand that we hold our clients interest first and foremost. And that is the way it‘s supposed to be. There will be a need for better record keeping, case design, fulfilled service promises, etc. The Ohlson Group has always operated under our SCIP trademark... "Service, Credibility, Integrity and profitability". These four traits must be represented in every financial service transaction.
We have been asking for your vote and rolling out our platform.
Our 4th quarter sales are the greatest in years. For that, we thank all of our loyal supporters. As it has been said by another person, our only special interest group is you. We continue to monitor all industry events and how they might affect you. I am just so glad that we can roll into the holidays with a better picture of the future.
Is there a lesson?
Yes, get involved and stay involved. Contact you elected officials this week and make sure they know that they need to repeal the DOL Fiduciary rule. As always, thanks for your continued support and your friendship. I give you my promise that I will not let down my guard and I will report to you on any new developments. This is not my first rodeo and I have the staff, the consultants, and in-house counsel that advise me. We work for you. Keep those votes coming in and until next time... good selling!