How could Trump’s call for review of Dodd-Frank and the DOL fiduciary rule impact the financial services industry? Any adjustments to the regulations are forecasted to be neutral to slightly positive for investment banks, brokerages, and asset managers, according to Morningstar analysts. However, while the effort to ease regulatory burdens on the nation’s banks has been kick-started, a full repeal or replacement of these laws would be far more difficult, and any changes to the laws could be painfully slow, says Morningstar. Get the full Morningstar report, What Regulatory Rollback Could Mean for Financials, here.
“Regardless of the status of the fiduciary rule, the financial sector has already made multiple moves in the direction of investors’ best interest that won’t reverse course.”
Trends to watch according to Morningstar: reduced fees as investors increase focus on costs; higher proportions of fee-based accounts; widely adopted digital advice models; enhanced fee transparency; and proactive global adoption of policies that are deemed in investors’ best interests.