Today is the day, after much anticipation, that the first phase of the Fiduciary Rule goes into effect. However, many of the more impactful elements in the Fiduciary Rule are still on hold, with a further delayed date, of January 2018. Brian Menickella writes in Forbes that, The DOL has said it will not enforce the rule until after January 1, 2018, when the requirements about disclosures and new contracts are set to take effect. This includes regulations of qualified funds, including retirement savings accounts, and the ability of investors to bring about class actions against advisors.
The law, originally set forth to protect the best interests of clients when working with Registered Investment Advisors (RIA's), has expanded on the "investment advice fiduciary" definition to include anyone involved in the financial planning process of a retirement account. This now puts a legal obligation on those individuals to recommend and sell the best solution versus simply a suitable and appropriate investment. What will be the impact? In many cases commission structures.
Get More: The DOL Fiduciary Rule: 3 Key Issues
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