NextCapital: Regulation Doesn’t Have to Mean Restriction

In Client News, Uncategorized by Ethan Rasiel

At the recent SourceMedia InVest conference in New York, industry experts explained why regulation can be just as much a friend of the advisory industry as an enemy as long as  firms can keep an open dialogue with regulators and a steady eye on the future.

Among those industry experts, the cofounder of our client NextCapital — Rob Foregger. Foregger toldattendees that while technology may stand out as an obvious disruptor to business models, regulation’s potential role in upending an industry is often overlooked.

“Regulation can usurp market forces at times, or can accelerate market forces that are already in place,” Foregger explained. “It can rapidly reorient the competitive landscape.”

Foregger went on to explain that, if the Department of Labor’s fiduciary rule continues along its planned trajectory, “product manufacturers” — Foregger’s term for traditional firms that create securities such as mutual funds and sell them to consumers — are the likely losers.

But, Foregger said there is also an upside — the more your business model is aligned with the interests of the client, the better off you may be down the road.

To learn more about the upside of regulation in the advisory industry, read the full story from Financial Planning.

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