The newly published fiduciary rule is, at first glance, a win for consumers and will result in some big changes for the industry. However, some of these changes will have negative side-effects for advisors, who will face more regulatory overhead costs which translate to lower profits.

Additionally, it may not actually benefit the client to switch to a fee-based account, and may exclude smaller clients from proper advice. These externalities of the rules that were intended to protect investors become particularly tenuous when a retiring client rolls over her 401(k) accounts.

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