The Department of Labor’s (DOL) Fiduciary Rule is a new ruling effective Friday, June 9, 2017. The DOL’s definition of a fiduciary demands that advisors act in the best interests of their clients and put their clients’ interests above their own.
Sound familiar? That’s because Starfox Financial Services, LLC has been and will continue to be fiduciary, putting our clients best interests first.
Here are 5 things you should know about the new Fiduciary Rule:
1. The new rule requires advisors, brokers, and wealth managers to act as a fiduciary and adhere to the “best interest” or “impartial conduct standard.”
2. Brokers have to be more upfront, transparent regarding fees, commissions, and conflicts of interest. They must avoid using misleading statements and recommend retirement products in their client’s best interests.
3. The new rule only applies for advice or recommendations over 401(k)s and individual retirement plans such as Employee Retirement Income Security Act of 1974 (ERISA) covered plans and participants and IRAs concerning securities, property, third-party advisers/managers and distributions from a plan or IRA.
4. It’s still important to do your research and know if your advisor is commission-based, fee-based, or a combination of both.
5. Organizations will be given until January 1, 2018, to implement the compliance, operational, technology and process changes to support the exemption requirements and new advice standards.
Is your broker, advisor or insurance company following the new rule? What does this change mean for you and your retirement accounts?
Starfox Financial Services, LLC’s experienced team of advisors are here to answer your questions, concerns, and share how we put our clients’ best interests first – in the past, present and future.
We look forward to talking with you about your 401(k) and retirement plan. Contact us at StarfoxFinancial.com/Contact-Us