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July 15, 2016 at 08:45 PM
Credit union financial advisors may be better positioned than others to adapt to the Department of Labor’s controversial fiduciary standard for qualified retirement accounts, according to a study released by Kehrer Bielan Research & Consulting on Wednesday.
The new rules will push advisers working in financial institutions to move from primarily transaction business to all advisory business. Congress passed a joint resolution that would have disapproved of the rules, but President Obama vetoed the resolution and Congress failed to override it.
The company’s annual benchmarking study found that credit unions are far ahead of others in making the transition.
“The average credit union in our annual benchmarking survey generates one-quarter of its overall revenue from advisory fees – a 19% greater share than the average in banks that own their broker-dealer,” said Tim Kehrer, co-author of the study and a senior research analyst at KBR&C, a Chapel Hill, N.C.-based consulting firm.
Advisory revenue as a share of total revenue increased 39% in credit unions year over year, the study of 994 credit unions found. The company also conducted an in-depth survey of 46 credit unions.
