How To Guide For: Understanding The Department Of Labor's New Fiduciary Rule

The Department of Labor's new Fiduciary rule requires all who provide retirement investment advice to plans such as 401(k)s, plan fiduciaries and IRAs to abide by a “fiduciary” standard — putting their clients’ best interest before their own profits. The new ruling is scheduled to be phased in April 10, 2017 and it expands the “investment advice fiduciary” definition under the Employee Retirement Income Security Act of 1974 (ERISA). The rule leaves no room for advisors to conceal any potential conflict of interest, and states that all fees and commissions must be clearly disclosed in dollar form to clients. The definition also includes any professional making a recommendation or solicitation and not simply giving ongoing advice. All financial professionals who work with retirement plans or provide retirement planning advice to the level of a fiduciary, bound legally and ethically to meet the standards of that status. To get more information on the Department of Labor's new Fiduciary Rule click the pictures below to read the articles.