Prepare now for the upcoming fiduciary rule

Though the U.S. Department of Labor fiduciary rule won’t take effect until April 2017, now is the time to think about how it will impact your business. Susan Catherine Paterson, FChFP, of Loganholme, Queensland, Australia, has seen similar regulation in her country and offers these tips to plan ahead:

“It’s really good to have your head around the numbers and start budgeting. Then ask, ‘What do I need to do to supplement any sort of financial impact?’ We did that over a four-year period because I knew we were going to suffer a $300,000 loss. Although we haven’t had growth, we’ve held our own through that period of time by planning and expecting it and reworking how we do it. The other thing I would say is if you’re process-driven and you’re really clever about the underlying ways you do business, you actually end up with not only a much stronger business, but one that works more cost-effectively and offsets some of your losses. So really dial down and look at your business.  I’d also say jump, don’t be pushed. Put your finger in the water and start charging fees and get used to it in your own time. That way, when you’re doing it, you’re doing it with a level of comfort, and you can choose clients that you’re most comfortable with. Start getting it all together, so that by the time you’re doing it, you are good at it and you’re confident about what you’re doing.”

Listen to more insights about how to prepare for the DOL fiduciary rule in the second installment of the three-episode series of the MDRT Podcast about the DOL regulation, and stay tuned for episode three, which focuses on addressing compliance and determining value for a fee-based practice.

This example is for educational and information purposes only. Each professional should set his own terms and conditions of engagement with the client through the process of negotiation.

Written by Matt Pais, MDRT Content Specialist