There’s been a lot of buzz regarding The Department of Labor Fiduciary Rule, the majority of it centering around the rule’s negative impacts on the industry. Financial advisors can’t seem to snap out of their denial or anger stage, even with the applicability date looming around the corner. Bottom line, the ruling is here to stay and firms can either continue on with their compliance woes or they can move on to the next “grieving” stage: ACCEPTANCE.

This stage is about accepting and dealing with the reality of the situation.  In this context, the first step is identifying HOW your firm will comply with the ruling. Firms that would like to keep their current compensation and fee practices must use the Best Interest Contract Exemption, which requires full and fair disclosure of: all material conflicts of interest; fees or charges paid by the retirement investor; and types of compensation the firm expects to receive from third-parties in connection with recommended investments. How your firm defines compliance will be determined by your legal team, but one thing is clear – you will need the ability to access and track this information on demand.

Fortunately, Talisys has comprehensive solutions available to help cope with the unprecedented level of surveillance and compliance the Fiduciary Rule requires. With our system, your financial advisors can:

  • Monitor direct-to-fund business with an integrated audit trail to prove compliance for all networking levels.
  • Access historical records and download customized reports.
  • Create, view, and save real-time information on all mutual fund transactions.
  • Retrieve settlement transactions to view firm and fund totals & differences for the current day or by status, settlement date, product, and control number.
  • Mitigate “conflicts of interest” by adding and managing trailers by order record, front-side trades, and back-side trades. Trailers are stored and are fully accessible in back-office and front-office modules.
  • Manage and perform manual transfers for mutual funds for fund direct transfer in & transfer out and third-party transfer in & transfer out.
  • Record and maintain data related to direct expenses and indirect expenses. Our 12b-1 commissions screen allows you to search for all problematic and/or mismatched commissions. Reps can also manually enter and edit commission information as well as post a fixed commission.
  • Easily manage solicited and non-solicited orders and keep track of all account activity. Our Client Accounts module parses records in the NSCC 0084 file, which identifies new accounts or modifications that need to be made to existing accounts and attempts to establish or adjust these accounts automatically.
  • Easily obtain and consolidate information regarding ALL products your firm trades through our Product Master module.

To be clear, our system only provides data to help your advisors comply and is NOT an overall solution to the fiduciary rule. Talisys is here to equip your firm with the necessary tools that will help alleviate the stress of being a fiduciary. Feel free to call us your financial therapist.

 

For more information, please contact our sales team at sales@talisystech.com or call 303.876.1618.