Research from the LIMRA Secure Retirement Institute reveals that many advisors want regulatory training, and help with orchestrating retirement income.
In the United States, the Department of Labor (DOL) is preparing to implement a new fiduciary rule which will increase the responsibilities that investment advisers and insurance agents have toward their clients. The new system is not unlike the "best interest" standard that the Canadian Securities Administrators (CSA) are currently considering; it obliges advisors to put their clients needs above all else and compensation arrangements that create a conflict of interest. When a product is recommended, the DOL rule says it must be the "best" one for the client, not simply a "suitable" one.
"Requests for additional training"
Faced with this new regime, 40% of the 1000 American advisors surveyed by LIMRA said that training in regulatory issues was a top priority for them. The number one choice, however, was training for social security claiming strategies (named by 46%). Training for healthcare planning was also a popular subject, increasing from 32% in 2011 to 42% in 2016 (respondents were able to choose more than one area of interest).
"The research from the Institute reported that half of all financial advisors say the majority of their business consists of pre-retiree and retiree financial planning, up 40% from 2011," says LIMRA. "As advisors expand their retirement income planning services, it’s natural to see requests for additional training in those areas."