After years of discussion, the Department of Labor proposed a new rule altering the long-standing fiduciary standard. Controversial from their start in 2010, these new regulations have been framed as a way to help the middle-class avoid excessive fees and poor advice from financial professionals who do not already serve as a fiduciary.

Under the current law, non-fiduciaries are not liable to steer clients toward the options that are truly best and are able to instead advise clients in a way that will profit themselves more. As a way to deter this practice and help the middle-class, the new ruling states that financial professionals including, brokers, registered investment advisors, insurance agents and others with retirement accounts, will have to act within the best interest of their clients, not themselves.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access