Granted, it’s an advocacy organization for independent broker-dealers, but the Financial Services Institute (FSI) released a survey of its members that finds an overwhelming majority (86 percent) believe President-elect Donald Trump should repeal the DOL’s 401k fiduciary rule.
The organization, which describes its members as “Main Street financial advisors and independent financial services firms,” said just over half said the economy and equities performance will be strong in 2017.
“Only 21 percent of advisors plan to sell their practice or retire in the next 1-5 years while 34 percent plan to acquire another practice,” FSI added. “Only 3 percent believe tax increases should be a part of any tax reform deal next year. And over half of advisors now have a succession plan in place – up 10 percent from our last poll two years ago.”
Over 70 percent of FSI members voted for Trump in the election.
Survey Results:
Note: Trends will be marked with an *
Question 1: Should President Trump revoke the DOL fiduciary rule?
Yes 86%
No 14%
Question 2: With the presidential and congressional elections over, will the economy in 2017 be:
Strong 58%
Neutral 36%
Weak 6%
Question 3: Do you believe 2017 will be a strong, neutral or weak year for equities performance?
Strong 56%
Neutral 37%
Weak 7%
Question 4: Looking forward to 2017, many are calling for tax reform. Should raising taxes, cutting spending or both be considered?
Raise taxes 3%
Cut spending 49%
Both 26%
Other 22%
Question 5: Do you plan to buy/acquire another practice or book of business in the next 1-5 years?
Yes 34%
No 66%
* In July 2014, yes was 29%
Question 6: If yes, what is your primary motivating factor for the acquisition:
Need for scale to remain profitable 28%
Opportunity too good to pass up 19%
Excited about the future of the business 23%
Expand services and clientele you sell 19%
Other 11%
Question 7: Do you plan to buy/acquire another practice or book of business in the next 5-10 years?
Yes 27%
No 73%
* In July 2014, yes was 24%
Question 8: If yes, what is your primary motivating factor for the acquisition:
Need for scale to remain profitable 29%
Opportunity too good to pass up 13%
Excited about the future of the business 27%
Expand services and clientele you sell 22%
Other 9%
Question 9: Do you plan to retire or sell your practice in the next 1-5 years?
Yes 21%
No 79%
* In July 2014, yes was 15%
Question 10: If yes, what is your primary reason for exiting the business:
Retirement 64%
Compliance burdens 7%
DOL Fiduciary rule 12%
Opportunity to monetize practice 4%
Career change 1%
Other 12%
Question 11: Do you plan to retire or sell your practice in the next 5-10 years?
Yes 26%
No 74%
* In July 2014, yes was 29%
Question 12: If yes, what is your primary reason for exiting the business:
Retirement 67%
Compliance burdens 7%
DOL Fiduciary rule 6%
Opportunity to monetize practice 9%
Career change 1%
Other 11%
Question 13: Do you have a business succession plan finalized and in place?
Yes 51%
No 49%
* In July 2014, yes was 41%
Question 14: Which candidate did you cast your vote for president?
Trump 71%
Clinton 19%
Other 10%
The survey was conducted in-house by FSI. All FSI independent financial advisor members were emailed a link to the survey through a secure database and completed the questionnaire online. 1,357 independent financial advisors completed the poll which was conducted the week after the election.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
