Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Is the DoL Ushering In the Extinction of Tiered Investment Platforms? Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, May 10, 2016

Is the DoL Ushering In the Extinction of Tiered Investment Platforms?

Reported by Neil Anderson, Managing Editor

Streamlined brokerage platforms may be the way of the future, and the Department of Labor (DoL) may be at least partly to blame.

Daniel R. Kleinman
Morgan Lewis
PartnerE
That's one prediction offered up by both panelists and fundster attendees today at the Investment Company Institute's (ICI's) special "Assessing the New DOL Fiduciary Rule: Policy and Practical Challenges" conference at the JW Marriott in Washington, D.C. Fundsters wonder if broker-dealers facing the new fiduciary rule will try to better levelize their compensation by, among other things, levelizing platform fees for mutual funds.

Dan Kleinman, a partner at Morgan Lewis Bockius and a panelist in the one-day conference's "Fund Distribution Under New Fiduciary Paradigm" panel, says that B-Ds would like to simply say, "if you'd like to be on our platform, you need to pay X." No more X for you, and Y for you, and just A for you because you're extra special or popular or will do lots of other support. Other fundsters in attendance tell MFWire that they, too, are hearing B-D interest in such an idea.

Another possibility, addressed by Kleinman and fellow panelist Yaqub Ahmed (head of defined contribution - U.S. at Franklin Templeton), is that some B-Ds might just use the most stripped-down share classes possible and then layer on their own fees on top.

"The broker-dealers are trying to move to a model where they're completely level at the firm level but also at the advisor level," says Joseph Lai, associate partner at McKinsey. And the DoL regs include a "pretty expansive definition of what those third-party payments include", such as conference sponsorships, seminars, and of course revenue sharing.

John McDonough, president of OppenheimerFunds Distributor, moderated the panel discussion.

The good and bad news is that it's early days. That means no one really has any answers or certainty yet.

"It is a mad scramble right now," Ahmed says.

Yet that scramble can also be an opportunity, Ahmed says, for the asset managers will to step up and help out their key B-D allies by making "calculated risks."

"Talk to your clients right now," Ahmed says. "We're very focused on our platform team. The platform inventory at the large B-Ds is likely to shrink over time."

"Reach out to your intermediaries," Kleinman says. "Ask them what they're doing. Tell them that you want to be a partner." 

Correction: A prior version of this story gave the wrong title for Yaqub Ahmed. He is head of defined contribution - U.S. for Franklin Templeton.

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. WE Pacific NW and CFA Society Seattle Welcome Mixer, September 22
  2. Havener Capital's Boutique Week 2023, Sep 26-29
  3. FT's Future of Asset Management North America, Sep 27-28
  4. MFDF webinar - Introduction to Retail Private Markets Funds: Structures to Access Private Equity, Private Credit, Infrastructure and Real Estate Investments, September 27
  5. Women In Finance Fall Mix n' Mingle Happy Hour, September 28
  6. Expect Miracles Atlanta Coast Classic, October 2
  7. MFDF webinar - Exchange Traded Funds: A Market Update for Fund Directors, October 4
  8. 4th Annual ETFGI Global ETFs Insights Summit - United States, Oct 4-5
  9. 8th Annual FUSE Forum, October 5
  10. ICI & GCMFA Networking Reception, October 10
  11. 2023 MMI Annual Conference, Oct 11-13
  12. 2023 IDC Fund Directors Conference, Oct 11-13
  13. WE South - ETF Conversations, October 17
  14. IMEA Star Awards Celebration, October 17
  15. IMEA Marketing Summit, Oct 17-18
  16. MFDF Director Discussion Series - Open Forum via Zoom, October 23
  17. ICI 2023 Securities Law Developments Conference - Day 1, October 24
  18. Schwab Impact 2023, Oct 24-26
  19. 2023 MMI Legal & Compliance Seminar, October 26
  20. ICI 2023 Securities Law Developments Conference - Day 2, October 26
  21. IMEA DE&I Roundtable, November 1
  22. IMEA Leadership Summit, Nov 1-2
  23. MFDF Director Discussion Series - Open Forum (Los Angeles), November 1
  24. MFDF Director Discussion Series - Open Forum (San Francisco), November 2
  25. Expect Miracles In Boston, November 2
  26. WIPN Nebraska - 3rd Annual Collegiate Career Exploration Event, November 2




©All rights reserved to InvestmentWires, Inc. 1997-2023
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use