Adviser demand for a technological answer to meeting new requirements of the Department of Labor's fiduciary rule has jumped in the three weeks since part of the retirement advice regulation was implemented.
Technology providers said interest in their fiduciary fintech had cooled following the election of President Donald J. Trump, who some speculated would scrap the best interest rule before its targeted April 10 implementation date. Instead, the DOL delayed it until June 9, when part of the rule went into effect while the agency continues to review the entire regulation.
"We've seen a tidal wave of interest since June 9," said Daniel Satchkov, president of RiXtrema, which sells a tool to help advisers compare costs of rolling funds out of 401(k) plans. "I think a lot of advisers were close to doing something for awhile, but they kept waiting because of the delays coming from the DOL."
RiXtrema has signed up 74 firms so far in June for its IRAFiduciary Optimizer, compared to single-digit sales of the tool during the other months of 2017.
RiXtrema's technology generates a report for transactions involving individual retirement accounts, comparing total fees an investor would pay before and after a rollover.
When the firm released the tool in October 2016, it quickly signed up about 30 clients before Nov. 8, when Mr. Trump was elected president.
"Since the election until June, everybody just stopped," he said.
It also helps an adviser show "fee reasonableness," Mr. Satchkov said.