Report Foresees Changes for Agents and Brokers in Wake of Dodd-Frank

Agents, brokers, advisors and others in the investment industry value chain will have to undergo a “redefining transformation” of their businesses to compete post-Dodd-Frank, according to a new research report.

This will include modifying their business models and other components of their business, including marketing practices, according to a new research report by the Financial Research Council, Boston, Mass.

The report says that the Dodd-Frank financial services reform legislation, especially the provision mandating a uniform fiduciary standard, will require changes in organizational processes, product development and marketing practices if the companies want to remain competitive.

These will be required, the report says, “to make advice and fiduciary standing safe, scalable, and easy to execute.”

Stephen Winks, author of the report, says that “Brokers, in their new role as advisor, will be addressing investment and administrative values, such as risk, return and cost structure, on behalf of the customer, and not just selling investment products.”

“That’s not required today,” he adds. “This has industry-wide implications.”