Raymond James Financial Inc. is ready to comply with the U.S. Department of Labor's fiduciary standard rule, but the company has not forced its financial advisers to completely adhere to the soon-to-be implemented regulation just yet, CEO Paul Reilly said.
The fiduciary rule is aimed at reducing conflicts of interest for financial advisers working with retirement accounts, and compliance is set to start in April. Reilly said Raymond James' advisers are aware of the steps they would need to take because of the regulation, but the company has been waiting for the rule to come into play before making all the adjustments in case the rule is rewritten.
"We certainly didn't want clients and our advisers to go through the pain of doing things (only) to undo it," he said.
Reilly said the rule is well-intended, and parts of it make sense, but the company sees other parts burdening clients and taking away advice. He added that he would welcome improvements to the rule and believes President Donald Trump's administration will make changes.
"All indications are that the administration is moving to certainly suspend the rule, delay it and maybe rewrite it," Reilly said.
However, Trump's regulatory moratorium could make it challenging to change the regulation because the final rule became effective in June 2016. If the rule is unchanged, Reilly said, his company is ready to comply.
"We're teed up to go," he said.