How Financial Institutions Are Handling the Fiduciary Rule
As expected, there’s a whole lot happening at fiduciary firm Fi360 in light of DOL rule chaos. We got some help in breaking it down.
The video explores how financial institutions are adapting to the U.S. Department of Labor’s fiduciary rule, which requires financial advisors to act in the best interests of their clients, particularly when handling retirement accounts such as 401(k)s. Matthew Wolniewicz of Fi360 discusses the regulatory shift and its impact on both institutions and advisors.
Wolniewicz explains that the fiduciary rule marks a major transformation in compliance and client service, pushing firms to move away from commission-based sales models and toward transparent, fee-based structures. This change emphasizes the importance of fiduciary responsibility, requiring advisors to demonstrate that investment recommendations are truly in clients’ best interests rather than driven by compensation incentives.
He notes that financial institutions are responding with a combination of technology adoption, new compliance frameworks, and advisor training. Many firms are enhancing their oversight processes, introducing documentation systems to track client interactions, and creating platforms that make fiduciary compliance easier for advisors to demonstrate. Education and support are also central, with institutions helping advisors better understand both the legal requirements and the spirit of the rule.
Wolniewicz highlights the long-term benefits: while the transition may be complex and resource-intensive, it should ultimately strengthen client trust, improve the quality of advice, and align the industry more closely with investor protection principles. The rule encourages a more client-centric business model that could reshape the financial services landscape over time.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and 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. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
