New Fiduciary Rules May Have A Huge Impact On Your Portfolio

New Fiduciary Rules May Have A Huge Impact On Your Portfolio

What the New Fiduciary Rules Mean for You

In early April the Department of Labor released the final version of their fiduciary rules. These rules apply to financial advisors who provide advice on retirement accounts such as an IRA or a 401(k). The rules state that the advisor must act as a fiduciary, in other words that we must provide advice that is in your best interests. For most financial advisors this is nothing new, though based upon the manner in which they are compensated or the financial products recommended, additional disclosures might be required.

Most notably financial products where commissions are involved will require the execution of a disclosure document called the Best Interests Contract Exemption or BICE. The DOL spells out a number of situations where this disclosure is required, both for advisors who earn compensation via commissions and fee-only advisors.

The DOL listened to the financial services industry and the final rules were modified to be more workable for financial advisors while still providing the disclosure and protections that clients and investors like you deserve.

Depending upon your financial advisor’s business model you may see some changes in the way they do business, or in some of the products and services offered to you.

If you have any questions about these new rules and how they impact you, please contact our office to set up a meeting. Our mission has always been to do what is best for our valued clients and that remains unchanged.

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