2017/06/09 – The fiduciary rule is now in effect: What you need to know – Yahoo
The rule requires financial professions of all types, including brokers, financial advisors or wealth managers, to act as a fiduciary, meaning they must act in the best interest of their clients. Before this rule went into effect, an advisor may have recommended financial products that are pretty good for you, but might have come with higher fees or commissions that benefit them. In a 2015 White House report under the Obama administration, the Council of Economic Advisors estimated that this conflict of interest costs investors $17 billion every year.
Now with the fiduciary standard in place, brokers have to be more upfront, transparent regarding fees and commissions, and recommend retirement products in their client’s best interests.
In fact, the fiduciary rule was supposed to go into effect in April, but President Trump backed the directive to delay the rule and review it again. The administration said it will reduce Americans’ access to certain retirement offerings, information and advice.
But after careful consideration, Labor Secretary Alexander Acosta confirmed that the rule would be phased in beginning June 9.