The Fiduciary Standard – What’s all the Hype?
For the past several years, The Department of Labor has attempted to get a fiduciary standard bill passed. This new rule was finally enacted and becomes effective on April 10, 2017. The rule is applicable to advisors and brokers who give advice to retirement plan investors.
What is the fiduciary standard? The rule requires that those who give retirement advice act in the clients’ best interest. What is considered “best interest”? The advisor’s advice must be based on the client’s objectives, risk tolerance, and needs without regard to the financial or other interests of the advisor or financial institution.
It makes sense, doesn’t it? Yet, banks and the brokerage community have been scrambling around for months lobbying against the rule (yes, against putting your interests first) and now that it has been enacted, they are trying to figure out how to comply. We at OFM have maintained a fiduciary standard for both retirement and non-retirement clients for years. CERTIFIED FINANCIAL PLANNER™ professionals are held to the fiduciary standard as are SEC Registered Investment Advisors. OFM is an SEC Registered Advisor and Sam, Jane, and Cris are CFP® professionals.
We at OFM accept no commissions and our service fees are fully and clearly disclosed. Our financial plans are client focused and the best interest of the client is always our priority. There will be additional paperwork, however, to validate compliance with the new rule.
All information is believed to be from reliable sources however we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Any market indices mentioned are unmanaged and cannot be invested in directly. Additional information, including management fees and expenses, is provided on our Form ADV Part 2. All investments involve risk and past performance is not a guarantee of future results.