In the News: Higher Financial Practice Standards
You may have heard media reports that the Department of Labor (DOL) has announced a 60-day delay of its Fiduciary Rule effort. This is proposed legislation mandating that advisors and financial institutions adhere to a new, government-defined standard that requires that the top priority in giving advice is the clients’ best interests. This would replace a lower standard of care called the “Suitability Rule” under which many firms now practice. This new fiduciary rule applies to advice involving retirement accounts (IRA’s, work retirement accounts, etc.)
It’s important to note that Laurel Wealth Planning already serves you at this higher fiduciary level in all of our work for you.
We chose this method of serving our clients years ago because objectivity and advising you the right way – free of other distractions – was, and is, very important to us. Frankly, we cannot envision operating within a business model where the client’s best interest is not paramount.
Therefore, we have long supported industry groups that have advocated for this fiduciary standard across our industry.
The DOL will use the additional 60 days to complete an in-depth examination of the rule and consider its potential impact on the ability of investors to gain access to retirement information and financial advice. As a result of this delay, the rule’s applicability date has been extended from April 2017 to June 2017.
Please let us know any and all questions, and enjoy your weekend.