AmygDOLa – How are you wired to react to the looming DOL rule threat?
“If it passes, to what degree do you see the DOL proposal impacting your business?”
At the time, 61% of advisors reported they expected "slight" to "no" impact.
- The left-hand side of the curve would be populated by that small group of advisors who weren’t engaged during the program and hence experience zero change in their business.
- The right-hand side of the curve would represent the other small group of advisors who implemented the majority of the curriculum and as a result achieved high levels of growth
- The middle of the curve would house the majority group of advisors who implemented only some of strategies and subsequently experienced moderate incremental growth.
- Advisors currently on the left side of the curve will either choose to leave the industry – or they will be forced out.
- The "average" advisor currently in the center of the curve will shift to the left.

- Freeze. Despite the overwhelming news coverage on the DOL rule, many advisors are stuck in a catatonic state. The range of emotions in this group varies from denial to an optimistic hope that the national political climate might cause the rule to be reversed. But regardless of the advisor's attempt to rationalize their inaction, the end result will likely be a material decline in their competitive position versus industry peers who are already taking action.
- Flight. Fidelity recently reported in a September survey of advisors that 10% of respondents said they are planning to leave or retire from the field earlier than they expected because of the rule, while another 18% said they are “reconsidering their careers as advisors.”[1] In sum total, that means a staggering 28% of advisors are considering exiting the industry. As the implications of the DOL rule and range of market forces hit the industry, these advisors are looking at the exit as a viable option. In some respects, the 28% estimate may in fact be conservative because it doesn’t yet account for those advisors who are currently in “freeze” mode and may still conclude that the requirements of running an advisory business are no longer economically feasible or of interest to them.
- Fight. These advisors likely have recognized three important things:
- This confluence of industry changes is an opportunity
- Many of the strategies necessary for success are familiar: they are the “best practices” that have been around for decades.
- The winning mindset is that “Defense is the best offense.” Defensively, advisors will need to implement these best practices to survive the regulatory and market forces. Those businesses that embrace and implement the best practices properly are most likely to have a solid foundation in place for continued growth… towards the right-hand size of the shifting curve.
The bottom line
The combined pressures of the DOL rule and shifting competitive forces, are triggering extreme amygdala responses for many advisors. If your amygDOLa is triggering a FIGHT response, our nearly 20 years of experience working with advisors to help build sustainable businesses would encourage you to focus your fight on the Four Pillars of a Sustainable Advisory Business.
[1] Source: http://www.fa-mag.com/news/have-advisors-learned-to-stop-worrying-and-love-the-dol-rule-29164.html