Stifel CEO Says Final DOL Rule Is 'Less Restrictive' Than He Feared

"Most of our clients have retirement IRAs, and they have taxable accounts," he said. "We can't be operating under two standards. I know the industry is going to look at that."

But Stifel has already worked hard to implement Reg BI, and as long as the new regulations work well with the SEC rules, the new regulations should not significantly affect Stifel's business, he said.

Dan Houston: Principal sold its non-variable annuity business but still sells individual variable annuities and has a large 401(k) plan business.

Houston emphasized that Principal can handle the new investment advice fiduciary requirements.

"Principal has a history of effectively adapting to and responding to regulatory change, while continuing to meet customer needs, and we'll do the same with this latest rule," Houston said. "We are analyzing the final rule and what it means."

Houston praised some changes Labor Department officials made to the original version.

The original draft could have kept Principal from even helping retirement plan participants to understand plan loans and hardship withdrawals, he said.

In the final, revised version, he said, the Labor Department confirmed the importance of financial education in workplace retirement plans and included language affirming that educational support for retirement savers reinforces positive saving behaviors.

"The ability for us to continue to provide participant insights in the normal course of business is now affirmed, it seems," Houston said.

But Houston said Principal is still concerned that the final rule end up increasing compliance costs and limiting consumer access to financial tools and financial advice.

Pictured: Ronald Kruszewski, CEO of Stifel Financial (Credit: Bloomberg)