1. Industry Impact: Department of Labor Proposal and a Fiduciary Standard

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3. ? What is the overall industry impact? Todays Discussion: DOL Proposal and a Fiduciary Standard ? Should I be paying attention? ? ? What is the specific impact to Broker Dealers, Advisors, RIAs, & Clients? How should I be preparing for change?

4. Overview of DOL Proposal Fiduciary Standard on retirement accounts Affects $10+ Trillion in IRA assets Final Rule – Mid 2016 (April) Expecting some changes based on feedback Who supports the proposal? CFP Board, FPA, NAPFA, some Major BDs Who opposes the proposal? FINRA, FSI, NAIFA

5. What are the Impacts? A Lesson from overseas Impact on Revenue Most will be replaced, but not all 12b-1s phased out Annuity and Commission comp decreased or changed Service on Smaller Accounts Shift to Robo? $250-600 B

6. Common Misconceptions Products must cost the same Advisors can make more if the product is more complex to sell (BICE) BDs can still have above line comp Lessens impact to BD, revenues will ease BDs don’t have to comply, just advisors Advisors won’t be able to charge higher fees Must justify their fees – through added service

7. Timing Mid-2016: Final Decision 2017: Enforcement 2018 & Beyond: Ripple Effect Republicans could veto.