What’s 1,023 pages in length and guaranteed to change the advisory industry forever? The Department of Labor’s new Fiduciary Ruling. With 2017 just around the corner, the rule is fast approaching implementation.
Don’t be intimidated!
While we certainly won’t suggest you read the entire DOL legislation, we are confident the impending DOL Fiduciary Rule creates an opportunity for advisors to get ahead of the competition.
The financial business has always been about relationships, and the new rule simply turns things up a notch.
3 Helpful Tips for Explaining the DOL Fiduciary Rule
Here are 3 quick tips to take advantage of the new DOL Fiduciary Rule and position your company for greatness in the new year.
1) Be Transparent & Maintain Trust
Keep your clients in the loop.
They already look at you and your firm with trust, and as you adapt to the new legislation from the Department of Labor, let your clients know what’s in store for them. The ideal way to accomplish this is by incorporating your role as a fiduciary in the content on your financial advisor website.
Keep it simple and to the point.
A concise paragraph that summarizes your client-centric focus is a great way to reinforce your role as their advisor. Think of it like renewing marriage vows. You’re telling your clients that the high personal standards you’ve always held are as strong as ever, and that you’re doubling down on your commitment to their most valued goals.
2) Draw the Line & Stand Out from the Competition
We don’t advocate character assassinations of your peers (and neither does your broker dealer!), but it’s the ideal time to delineate the differences between your firm and the competition. In a business that thrives on uniqueness, you can further separate yourself by specifying the standard that other advisors uphold, the suitability standard.
Though that lower level of care will no longer be tenable come springtime, you can capitalize on the interim months to establish your own firm as a fiduciary long before it was popular to do so.
Let prospective clients hear the truth: while your competition seeks a profit, you strive to help your clients achieve their goals.
You can be opaque, yet powerful in your assessment. One example might read, “Firms that operate under the “suitability standard” provide services that generally meet your needs, while also trying to fulfill their own. It’s an inherent conflict of interest.”
3) Spell It Out: Feature Your Role as a Fiduciary
While you can certainly feature your role as a fiduciary on the home page, we would suggest incorporating that verbiage under your About Us/Company page.
For prospective buyers undergoing a thorough examination of your website, the truly interested and savvy clients will appreciate reading about your role as a fiduciary.
First, tell them what it is: “The strictest duty of care as recognized by the US legal system.”
Then, show them how you uphold it, the process to which your firm adheres, and the strategies you can create to help investors succeed.
Embrace Your Fiduciary Status
At the end of the day, the new DOL regulations are not to be feared. Like any other industry evolution, they can be intimidating and threatening to a well-established way of life.
As you embrace your status as a fiduciary, know that it presents an opportunity to distinguish yourself from the competition and a way to enhance your brand.
How Advisor Launchpad Can Help
If you need help with your content, or want some fresh ideas for explaining the DOL Fiduciary Rule on your website, we’d be happy to assist.