We have heard from executives that manage investment services inside financial institutions that they expect revenue to decline in 2017 as a result of the disruptions caused by the implementation of the Department of Labor's Fiduciary Rule. They have also told us they need help managing the expectations of bank management, who expect investment services revenue to grow.

 

That’s why we created the Kehrer Bielan DoL Revenue Impact Calculator, an interactive tool that models how your revenue picture will change after the Rule goes into effect in April, taking into account the reality of your business and adjusting for the actions you plan to take in 2017.

 

We built the Calculator based on decades of benchmarking data, deep knowledge of how your business works, and unparalleled perspective on how the industry is approaching implementation. But the DoL Revenue Impact Calculator goes far beyond applying an industry average to your business.

 

Here’s how it works:

 

The DoL Revenue Impact Calculator looks at the following key drivers of revenue.

  • The Rule’s impact on the size and composition of your advisor force, including the potential for:

o   Loss of low producers who cannot be maintained or will not earn enough to survive

o   Loss of top producers as the premium escalates for advisors with an advisory book and a planning practice

o   Increased difficulty in hiring in an even more challenging recruiting environment

 

  • The impact of use of BIC and PTE 84-24, including the potential for:

o   Fewer small accounts

o   The shift from commission products to advisory

o   Reduction in rollovers

o   Lower commissions and advisory fees (due to the reasonable fee requirement)

 

  •  And potential offsets, such as:

o   Net new hires

o   Productivity gains from existing advisors

 

For each area listed above, the Calculator provides a range of expectations and a baseline estimate based on what we believe the experience of the average firm will be. But you can adjust each of 18 interactive variables to take the reality of your business into account, including the composition of your advisor force, your current revenue mix, and the actions you plan to take next year.

 

The calculations are all performed automatically, providing you with an instant, customized projection of how your firm’s revenue is likely to be impacted by the DoL Rule. There is no limit to how many times you can adjust the variables, allowing you to run multiple projections to compare various scenarios side-by-side. Finally, the Calculator prints neatly to a single page, making presenting the projection, and comparisons, easy.

 

Do you need help adjusting expectations within your institution for life after DoL? The DoL Revenue Impact Calculator is here for you.