With Or Without The New Fiduciary Rule, We Have Your Back
When the Department of Labor (DOL) proposed its fiduciary rule for retirement accounts in 2015, the department wasn't prepared for the controversy the rule generated. After months of review, the DOL unveiled the final rule early in 2016. It is slated to take effect on April 10, 2017.
Although the final rule reflects the basic tenets of the proposed rule, it does include some modifications designed to appease its critics.
At its core, the rule requires financial advisors and their firms to uphold fiduciary standards when those advisors and firms are compensated for investment advice and recommendations relating to retirement accounts such as 401(k)s and IRAs. Essentially, advisors and firms must promise that they're putting the best interests of clients before their own.
This "best interest" stipulation must be reflected in a written contract that says the advice being offered is based on a client's particular needs.
Among other modifications, the final rule covers assets that previously were thought to be excluded, such as variable annuities, and repeals certain requirements for projections of advisor fees. It also streamlines the procedures for the contracts.
We always have put our clients' best interests first and will continue to do so. No regulation is needed to ensure our good faith.
© 2020 Advisor Products Inc. All Rights Reserved.
- Social Security Options Remain
- Do Robo Advisors Have Glitches?
- Cash In On This Gift Tax Break For Section 529 Plans
- Millennials Want To Save More And Resist Impulse Purchases
- Starting A Retirement Plan? SIMPLE
- Do You Have To File An FBAR Now?
- Views On Retirement Communities
- SS Benefits: Tax Danger Ahead!
- What Will Your Social Security Benefits Come To?
- Market Timing Is An Inexact Science
- Still Time To Save $1 Million?
- When One Roth IRA Is Not Enough
- When To Use An Installment Sale
- Women Save More For Retirement Than Men But Have Less
- 5 Ways To Boost Retirement Savings
What To Expect In The Weeks Ahead