There has been big news in the financial services world as the Final Fiduciary Rule is being modified and expanded.
What does it mean to be a fiduciary? In short, it means as a financial representative and advisor, one acts in the best interest of her client- we're on the same team and working towards a common goal. In comparison, some “advisors” actively operate in their own best interest, selling products on commission. They are representing themselves or their companies, not you as their client.
The changes in the Fiduciary Rule aim to reduce the billions of dollars U.S. investors lose annually because of biased financial advice. We fully support and are committed to the public’s interest, your interest, and our clients’ interests. This is what the fiduciary standard aims to do, and what we have been doing since our founding.
According to the DOL, the final rule aims to update outdated retirement protections by requiring more retirement investment advisers to put their client's best interest first, expanding the types of retirement investment advice covered by fiduciary protections, preserving access to retirement education, distinguish "order-taking" as a non-fiduciary activity, carving out sales pitches to plan fiduciaries with financial expertise, and lead to gains for retirement savers in excess of $40 billion over the next 10 years.
In addition there are changes to complying with the proposed rule and strengthening enforcement of consumer protections.
If you’re interested in the gritty details, here is a fact sheet and a summary issued by the U.S. Department of Labor, explaining the changes, and if you’d like to discuss this with one of our team members, please feel free to reach out to us.