New U.S. Department of Labor Rule
At a high level, the U.S. Department of Labor (DOL) fiduciary rule will have an impact across the industry as it expands the definition of a fiduciary standard for qualified retirement accounts.
Today, Ameriprise Financial already operates as a registered investment advisor, acting in the best interest of clients under the existing SEC fiduciary framework and meeting FINRA suitability standards. The DOL rule is an additional framework that will make anyone who is compensated for providing advice to qualified accounts, such as IRA and 401(k) accounts, an ERISA fiduciary.
Supporting our advisors in times of change
At Ameriprise, we firmly believe that supporting our advisors helps pave the way for their success. Working closely with our advisors to help them understand and navigate the DOL rule is a top priority for us.
To ensure that Ameriprise advisors and field leaders understand the implications for advisors’ practices and their clients, we provide timely and extensive resources on the Ameriprise DOL Resource Center. It features a series of ongoing webcasts with senior leaders, talking points, FAQs and email templates advisors can use with clients, and much more. Advisors can have their questions answered quickly and accurately by our DOL response team. And, we’re proactively keeping clients with qualified retirement accounts up to date through email and ameriprise.com.
For more than 120 years, we’ve had excellent results in helping our advisors manage through change, including:
- Establishing Ameriprise Financial as an independent public company
- Navigating the financial crisis without taking a bailout
- Integrating several major acquisitions
- Effectively incorporating regulatory requirements over the years
Through each of these changes, we’ve focused on what we do best — serving clients’ needs through comprehensive advice.
Culture of compliance
Ameriprise and our advisors have always had a strong compliance culture and infrastructure. We’ve been able to operate successfully in a highly regulated environment, and we’ll continue to build on this.
The DOL will use a phased implementation approach, and all firms will be subject to the new fiduciary standard as of April 2017. The remaining requirements will not take full effect until January 1, 2018. We will help advisors understand the requirements and what they mean for their clients and practices by the required effective dates.
Advisors and clients can count on Ameriprise
Though the rule brings with it certain changes, it will not alter our dedication to helping our advisors serve their clients and grow their practices. We recognize that our success, like our advisors’ and clients’, depends on long-lasting advisor-client relationships. That’s why we’re committed to providing our advisors with the resources they need to help make a difference in their clients’ lives, including:
- Advice and solutions — Our comprehensive financial planning process, state-of-the-art financial planning tools with built-in compliance, and access to a broad array of products and solutions — including our Confident Retirement® approach — enables advisors to provide clients with effective and compliant financial plans
- Integrated technology — Our industry-leading integrated technology, the PracticeTechSM platform, helps advisors drive practice efficiencies and deliver an exceptional client experience
- Practice management — Our practice management tools and services make it easier for advisors to run and grow their practices in each stage of their practice life cycle
While the DOL rule will certainly introduce some changes, Ameriprise advisors can be confident that we’ll help them and their clients with the same dedication, integrity and support that have been our hallmark through many changes over the years.