Building better portfolios after the DoL fiduciary rule

Post-Election Update

There is a lot of speculation around the Trump presidency’s ultimate impact on the DoL Fiduciary Rule. Irrespective of whether the Rule will be retained, modified or repealed, many advisors were already moving towards more fiduciary practices and helping clients manage both costs and risks in their portfolios. We encourage advisors to develop strong value propositions to differentiate from others who provide advice and position their practices for future growth.

Learn more about how operating as a fiduciary can help you differentiate your business from Salim Ramji, Head of BlackRock’s US Wealth Advisory Business.

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      Operating as a fiduciary   |   What's happening and why   |   BlackRock can help

Building portfolios as a fiduciary

As a fiduciary, working to deeply understand client objectives, and regularly reaffirming them, may be the most important thing you do with clients.

Operating as a fiduciary

As a fiduciary advisor, you need a robust process to answer the pivotal question  –

Is this decision in the best interest of my client?

At BlackRock, we believe that process begins with a deep understanding of your client’s objectives. When you build a portfolio with careful attention to weighing risks and costs in an effort to bring your clients closer to their investment goals, you demonstrate your value as a fiduciary. 

Regularly consult with your home office or legal counsel for guidance on the rule’s impact on your individual practice.

OBJECTIVE-SETTING WORKSHEETS

We provide portfolio construction tools and insights to help you better understand risks, manage overall portfolio costs and build portfolios that may help bring your clients closer to their investment goals. Our powerful technology platform, Aladdin®, integrates risk analytics, portfolio management, and trading and operations. We believe that financial advisors equipped with BlackRock’s tools, technology and resources are well positioned to embrace this evolving environment.

Risk management
Risk management
Risk management is the foundation of building better portfolios as a fiduciary. Explore the power of Aladdin - the risk management platform that underpins BlackRock's technology and tools.
Risk management
Risk management Risk management
Risk management is the foundation of building better portfolios as a fiduciary. Explore the power of Aladdin - the risk management platform that underpins BlackRock's technology and tools.

What’s happening

The Department of Labor's (DoL) fiduciary rule, also known as the “conflict of interest” rule, extends fiduciary status and responsibilities under the Employee Retirement Income Security Act of 1974 (ERISA) to advisors and firms for a broader range of services relating to retirement assets, including IRAs. As a fiduciary under ERISA, it is important to be able to demonstrate and ensure that each recommendation you make is in the best interest of your client.

Why?

The purpose of the rule is to increase protections for retirement investors by ensuring that all advisors are acting in their client’s best interest and addressing potential conflicts of interest.

Important dates

June 7, 2016 Effective date of the rule
April 10, 2017 Substantive provisions begin to apply
January 1, 2018 Full compliance required

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Putting it into perspective

The Department of Labor’s new fiduciary rule imposes ERISA’s fiduciary obligations on a broader range of advisory services, which could result in changes to your business.

BlackRock can help

You are faced with the challenge of helping clients achieve their financial objectives in a difficult market environment, while meeting your fiduciary obligations and growing your practice in an ever-evolving world. BlackRock offers a comprehensive suite of tools and investment options that may help you achieve your business objectives and design robust portfolios.

Tax Efficient Portfolios

Tax Efficient Portfolios

Identify potential capital gains and tax loss harvesting opportunities for clients' taxable accounts.

Portfolio Construction

Portfolio Construction

Use portfolio construction services and model portfolios to help support your business.

iRetire®

iRetire®

Help clients close their retirement income gap.


Active Product Options

Active Product Options

Explore a range of investment options with competitive performance profiles and flexibility in fee structure by share class.

Index Product Options

Index Product Options

Use iShares Core Funds as building blocks for the heart of your portfolio, now at an even lower cost.