The Department of Labor’s proposed fiduciary rule could have a drastic impact on the profits and business models of asset management and brokerage industries, as the new standards for financial advisors serving retirement accounts could send $1 trillion in new assets to passive investment products, according to Morningstar (H/T FA Mag). Michael Wong, equity analyst at Morningstar, in a report published last week, however, argues the new rule could benefit discount brokerages, index and exchange-traded product providers and robo-advisors. $1 trillion could move to passive investment products The Morningstar analyst notes the Department of Labor is currently considering revisions to…
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