Broker Check

A Further Update on The DOL Fiduciary Rule

| July 11, 2017

Several months ago, we posted an update on our blog regarding news that our then newly elected President had issued a directive to the Department of Labor (DOL) regarding its Fiduciary Duty Rule or “Conflict of Interest” Rule, which applies to IRAs and retirement accounts subject to the Employee Retirement Income Security Act (ERISA). The order requires the DOL to re-analyze the Rule to ensure that it does not adversely impact how Americans like you can receive financial advice. To facilitate this review, the DOL rolled back the implementation date from April 10 to June 9, and also determined that certain elements of the Rule would not go into effect until January 1, 2018.

We applaud the DOL’s delay to assess if further amendments to the Rule are warranted and to determine if certain requirements of the Rule should be further postponed. We are also encouraged that the DOL is actively calling for the Securities and Exchange Commission (SEC) to be part of the ongoing evaluation, and that the SEC has issued its own request for comments. Our ultimate hope is that this process will benefit consumers and advisors alike in creating a fiduciary standard that applies equally to all investment advice and is also easy to understand.

As your team of financial professionals, we greatly support the goal of investor protection for all investor assets, not just retirement savings. We strive to do what is in the best interest of our clients in every interaction and firmly believe all financial advisors should do the same. To that end, we wholeheartedly support appropriate regulation and full transparency for investors, and we take the responsibility of complying with regulations from several agencies, and that of providing financial advice to you, very seriously.

As the various elements of the Rule went into effect on June 9, our clients can expect that they may receive additional disclosures or other information, or that we may ask them for some additional information that will be required under the new Rule during the coming months as we discuss their investments. For the most part, this will simply be business as usual and we will let our clients know of any impact to their accounts. Please rest assured that as always, our clients’ best interests are our primary concern and the highest focus of our business relationship.

Thank you for allowing us the privilege of helping you achieve your financial goals. Please don’t hesitate to reach out to us at FIFS Capital Advisor Group if you have any questions.