Robo-advisers shrug off U.S. fiduciary rule hubbubNEW YORK (Reuters) - As century-old Wall Street brokerages have agonized over the fate of a major U.S. regulation on retirement advice, younger Silicon Valley counterparts have coolly shrugged their shoulders.     At issue is when and how the federal government will implement the so-called “fiduciary rule” handed down by the U.S. Labor Department last year. The rule, which aims to protect retirees by eliminating conflicts of interest for the brokers paid to advise them, was set to go into effect in April, but is being challenged by the Trump administration.   The rule is now on track to be delayed by 180 days – creating a great deal of uncertainty about its future.    Big wealth managers and insurers most affected by the rule have welcomed signs that the new White House may roll it back. They have fought hard against the rule in court and on Capitol Hill, arguing that it would raise compliance and technology costs, while restricting brokers’ ability to charge commissions and sell certain high-fee products.  Critics have said the additional costs would force brokerages to dump less well-heeled clients in favor of wealthier ones. Startups offering digital wealth management services have taken the opposite tack, saying the rule would benefit retirees and their own businesses. Investors abandoned by big firms might move to digital providers, which offer transparent, lower-cost alternatives, the thinking goes.     In interviews since Trump instructed the Labor Department to review the rule earlier this month, executives at “robo-advisers,” which manage investor money with algorithms, brushed off the impact of the rule on their business.  Although the rule might have sped up a broader shift of investor money to “robo-advisers,” the trend had been gathering momentum anyway, they said.     “An expansion of the fiduciary rule would be nice for our business, but in no way affects our ultimate success,” said Andy Rachleff, chief executive officer of Wealthfront, one of the largest robo-advisers that deals directly with investors.     Wealthfront competitor Betterment has encouraged Democrats in recent weeks to fight efforts to delay or gut the rule. Nonetheless, Betterment’s Associate General Counsel Seth Rosenbloom said any regulatory changes would have little impact on the company’s growth.     “We are sad that it looks like ... the rule might go away, be delayed or watered down,” Rosenbloom said. “But we are optimistic that the attention around the issue will make for better informed investors in the long run.” Among robo-advisers that provide services to brokerages, Mike Sha, co-founder and chief executive of robo-adviser SigFig, said he did not expect the rule’s delay to impact its business or partnerships at all. Wealth units of Wells Fargo & Co and UBS Group AG use SigFig’s technology and offer its online investing tools to their clients.     Robo-advisers represent a small piece of the wealth management industry, overseeing roughly $200 billion of client assets in 2016, according to consulting firm A.T. Kearney. It expects the total to surge to $2.2 trillion by 2020.     Interrupting the fiduciary rule could slow that growth for some companies. Last week, for instance, LPL Financial Holdings, said if the rule was delayed, it might move more slowly in rolling out some compliance plans, which include its robo-adviser and other new technology.     But the shift to less expensive digital options began before the rule was formalized, driven primarily by customer demand for more digital options. That trend is unlikely to be stopped with or without the rule, analysts said.     “By all projections, there is unbelievable demand for digital advice and solutions,” said Kendra Thompson, a managing director in the financial services group at the consultancy Accenture. The rule is “an accelerator for digital, not an originator,” she said. politicsNews
shrub fiduciary rule hubbubnew york reuters as wall street brokerage canonized fate major regulation retirement advice younger silicon valley counterparts woolly struggled shoulders at issue federal government implement fiduciary rule handed labor department last year the rule aims protect retirees eliminating conflicts interest brokers paid advise set go effect april challenged trump administration the rule track delayed days creating great deal uncertainty future big wealth managers insurers affected rule welcomed signs new white house may roll back they fought hard rule court capitol hill arguing would raise compliance technology costs restricting brokers ability charge commissions sell certain products critics said additional costs would force brokerage dump less clients favor wealthier ones startups offering digital wealth management services taken opposite tack saying rule would benefit retirees businesses investors abandoned big firms might move digital providers offer transparent alternatives thinking goes in interviews since trump instructed labor department review rule earlier month executives manage investor money algorithms brushed impact rule business although rule might sped broader shift investor money trend gathering momentum anyway said an expansion fiduciary rule would nice business way affects ultimate success said andy rachleff chief executive officer wealthfront one largest deals directly investors wealthfront competitor betterment encouraged democrats recent weeks fight efforts delay gut rule nonetheless betterment associate general counsel seth rosenbloom said regulatory changes would little impact company growth we sad looks like rule might go away delayed watered rosenbloom said but optimistic attention around issue make better informed investors long among provide services brokerage mike sha chief executive sigfig said expect rule delay impact business partnerships wealth units wells cargo co us group ag use sigfig technology offer online investing tools clients represent small piece wealth management industry overseeing roughly billion client assets according consulting firm earned it expects total surge trillion interrupting fiduciary rule could slow growth companies last week instance pl financial holdings said rule delayed might move slowly rolling compliance plans include new technology but shift less expensive digital options began rule formalized driven primarily customer demand digital options that trend unlikely stopped without rule analysts said by projections unbelievable demand digital advice solutions said genera thompson managing director financial services group consultancy adventure the rule accelerator digital originator said politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Robo-advisers shrug off U.S. fiduciary rule hubbubNEW YORK (Reuters) - As century-old Wall Street brokerages have agonized over the fate of a major U.S. regulation on retirement advice, younger Silicon Valley counterparts have coolly shrugged their shoulders.     At issue is when and how the federal government will implement the so-called “fiduciary rule” handed down by the U.S. Labor Department last year. The rule, which aims to protect retirees by eliminating conflicts of interest for the brokers paid to advise them, was set to go into effect in April, but is being challenged by the Trump administration.   The rule is now on track to be delayed by 180 days – creating a great deal of uncertainty about its future.    Big wealth managers and insurers most affected by the rule have welcomed signs that the new White House may roll it back. They have fought hard against the rule in court and on Capitol Hill, arguing that it would raise compliance and technology costs, while restricting brokers’ ability to charge commissions and sell certain high-fee products.  Critics have said the additional costs would force brokerages to dump less well-heeled clients in favor of wealthier ones. Startups offering digital wealth management services have taken the opposite tack, saying the rule would benefit retirees and their own businesses. Investors abandoned by big firms might move to digital providers, which offer transparent, lower-cost alternatives, the thinking goes.     In interviews since Trump instructed the Labor Department to review the rule earlier this month, executives at “robo-advisers,” which manage investor money with algorithms, brushed off the impact of the rule on their business.  Although the rule might have sped up a broader shift of investor money to “robo-advisers,” the trend had been gathering momentum anyway, they said.     “An expansion of the fiduciary rule would be nice for our business, but in no way affects our ultimate success,” said Andy Rachleff, chief executive officer of Wealthfront, one of the largest robo-advisers that deals directly with investors.     Wealthfront competitor Betterment has encouraged Democrats in recent weeks to fight efforts to delay or gut the rule. Nonetheless, Betterment’s Associate General Counsel Seth Rosenbloom said any regulatory changes would have little impact on the company’s growth.     “We are sad that it looks like ... the rule might go away, be delayed or watered down,” Rosenbloom said. “But we are optimistic that the attention around the issue will make for better informed investors in the long run.” Among robo-advisers that provide services to brokerages, Mike Sha, co-founder and chief executive of robo-adviser SigFig, said he did not expect the rule’s delay to impact its business or partnerships at all. Wealth units of Wells Fargo & Co and UBS Group AG use SigFig’s technology and offer its online investing tools to their clients.     Robo-advisers represent a small piece of the wealth management industry, overseeing roughly $200 billion of client assets in 2016, according to consulting firm A.T. Kearney. It expects the total to surge to $2.2 trillion by 2020.     Interrupting the fiduciary rule could slow that growth for some companies. Last week, for instance, LPL Financial Holdings, said if the rule was delayed, it might move more slowly in rolling out some compliance plans, which include its robo-adviser and other new technology.     But the shift to less expensive digital options began before the rule was formalized, driven primarily by customer demand for more digital options. That trend is unlikely to be stopped with or without the rule, analysts said.     “By all projections, there is unbelievable demand for digital advice and solutions,” said Kendra Thompson, a managing director in the financial services group at the consultancy Accenture. The rule is “an accelerator for digital, not an originator,” she said. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: shrub fiduciary rule hubbubnew york reuters as wall street brokerage canonized fate major regulation retirement advice younger silicon valley counterparts woolly struggled shoulders at issue federal government implement fiduciary rule handed labor department last year the rule aims protect retirees eliminating conflicts interest brokers paid advise set go effect april challenged trump administration the rule track delayed days creating great deal uncertainty future big wealth managers insurers affected rule welcomed signs new white house may roll back they fought hard rule court capitol hill arguing would raise compliance technology costs restricting brokers ability charge commissions sell certain products critics said additional costs would force brokerage dump less clients favor wealthier ones startups offering digital wealth management services taken opposite tack saying rule would benefit retirees businesses investors abandoned big firms might move digital providers offer transparent alternatives thinking goes in interviews since trump instructed labor department review rule earlier month executives manage investor money algorithms brushed impact rule business although rule might sped broader shift investor money trend gathering momentum anyway said an expansion fiduciary rule would nice business way affects ultimate success said andy rachleff chief executive officer wealthfront one largest deals directly investors wealthfront competitor betterment encouraged democrats recent weeks fight efforts delay gut rule nonetheless betterment associate general counsel seth rosenbloom said regulatory changes would little impact company growth we sad looks like rule might go away delayed watered rosenbloom said but optimistic attention around issue make better informed investors long among provide services brokerage mike sha chief executive sigfig said expect rule delay impact business partnerships wealth units wells cargo co us group ag use sigfig technology offer online investing tools clients represent small piece wealth management industry overseeing roughly billion client assets according consulting firm earned it expects total surge trillion interrupting fiduciary rule could slow growth companies last week instance pl financial holdings said rule delayed might move slowly rolling compliance plans include new technology but shift less expensive digital options began rule formalized driven primarily customer demand digital options that trend unlikely stopped without rule analysts said by projections unbelievable demand digital advice solutions said genera thompson managing director financial services group consultancy adventure the rule accelerator digital originator said politicsnews