With the new Department of Labor fiduciary rule looming, there are six simple steps broker-dealers need to take to thrive in a tougher fiduciary climate. Outlined by Ron Rhoades, program director for the financial planning program at Western Kentucky University, these include:

In keeping with this, Rhoades suggests that advisers rethink how they’re getting paid and discontinue building their business around commissions or 12b-1 fees. “I think over the long term, the fiduciary culture is going to win out over a sell-side culture,” he says, noting that at present fee-based revenue accounts for at least half of all BD compensation.

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