The DoL rule, due to come into force by 10 April, requires financial advisers to act in the best interests of their clients in retirement accounts.
In order to eliminate conflicts of interest, some brokers have decided to charge the same fee for all mutual funds, rather than having them differ by funds.
Prior to the rule, the commission for funds could vary, posing a potential conflict for brokers who recommend the funds with the highest payout. Now, the commissions may be set at different levels by brokers.
In a statement on its website last month, the SEC said information on fees must be presented in standalone document “in [a] clear, concise and understandable manner, and should include tables, schedules and charts where doing so would facilitate understanding”.
Similar to a Ucits Kid document used for European funds, it is hoped that such brochures will promote greater transparency and allow investors to compare fees.
It is still unclear what stance Trump will take on the DoL’s fiduciary rule when he comes into power later this month.
Last year, Anthony Scaramucci, a Trump adviser who runs the $12.4bn (€11.8bn, £10bn) SkyBridge Capital hedge fund firm, said that the incoming administration should dismantle the adviser reforms intended to put an end to hidden fees.
However, experts say the fiduciary rule will be delayed temporarily in a bid to work through some of the kinks in the legislation.