Subscribe Now!
Free Daily News, Jobs, Webcasts, Discussions
Display and Distribute
Your Job Openings
COVID-19 News
COVID-19 Webcasts

Featured Jobs

Plan Administrator

Independent Retirement
(Telecommute / Portland OR)

Independent Retirement logo

Distribution Specialist

Carpenter Morse Group
(Telecommute / Longwood FL)

Carpenter Morse Group logo

Client Success Specialist

Ubiquity Retirement + Savings
(Telecommute / San Francisco CA / AZ / CO / FL / IL / KY / LA / MA / NC / NJ / NV / NY / OR / SC / TN / WA)

Ubiquity Retirement + Savings logo

Retirement Plan Administrator

Carpenter Morse Group
(Telecommute / Longwood FL)

Carpenter Morse Group logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

By Date   |   By Company Name


View More Press Releases by DALBAR

Press release:

DALBAR Offers Template to Create BICE Budget Identifies 13 Impact Areas

Issued by: DALBAR

Date: Aug. 30, 2016

Boston, MA, August 30, 2016 -- Firms have already spent millions in preparation for the April 10, 2017 date of the Best Interest Contract Exemption (“BICE”) of the DoL’s Fiduciary Rule. Many expect to continue making massive expenditures to implement the litany of changes that BICE adoption requires.

The questions that many have been asking is, “What will it cost in the end” and how do we budget for this.

DALBAR has just completed an analysis to answer these questions. The result is a sample analysis and a worksheet to enable firms to identify the expenditures and revenue losses that are entailed in a BICE implementation. The analysis and worksheet also compares the cost of BICE to the DoL’s other recommended alternatives /1/, the computer model and fee leveling options of ERISA 408(g). Results and worksheet are available online at Budgeting for BICE.

The analysis shows that this activity will affect:

  • Resources
    Legal and Compliance Expertise, Systems Technology Resources, Communication Expertise, Digital Technology, Training, Marketing, Risk Management, Advisor.
  • Revenue Loss
    Client Attrition, New Business Pricing, Advisor Attrition, Rollover Prohibition.
  • Strategic Position
    Advisor Productivity, Need for Small Account Solution, Reaction to Non- Incentivized Compensation, Increase in Unpleasant Activities.
The analysis shows BICE costing a broker/dealer with 250 reps $1,648,000 in the first year and $2,744,125 the following year. This compares to the same firm using the computer model with costs of $370,000 in the first year and a net profit increase in the next.

/1/ The conditions to an exemption [BICE] are not equivalent to a regulatory mandate that conflicts with or changes the statutory remedial scheme. If Advisers or Financial Institutions do not want to be subject to contract claims, they can
(1) change their compensation structure and avoid committing a prohibited transaction,
(2) use the statutory exemptions in ERISA section 408(b)(14) and section 408(g), or Code section 4975(d)(17) and (f)(8), or
(3) apply to the Department for individual exemptions tailored to their particular situations.

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.

BL:hh

View More Press Releases by DALBAR


This is a press release issued by the company named above. BenefitsLink is not the author. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by BenefitsLink.

© 2020 BenefitsLink.com, Inc.