Howard Diamond Quoted
By Elizabeth McCourt
Morgan Stanley’s decision to cut back-end deals signaled the initial fallout from the Department of Labor’s fiduciary rule FAQ document, which provides advisers guidance on how to interpret the impending regulation.
Long-time recruiter Howard Diamond of Diamond Consultants offers a suggestion that spares all adviser recruiting deals from the impacts of the regulation.
“Why not bifurcate the deal from the retirement assets? Whereby, an adviser with a strictly fee-based business, and therefore not covered by the DOL rule, will still be incentivized to make a change.” On the flip side, he says, this could be a windfall for the independent space.