An early victory was scored for consumers last week when a federal court refused to place on hold the U.S. Labor Department’s “Fiduciary Rule.” The rule, which will take effect next April, requires anyone giving advice on retirement accounts always to act in the best interests of their clients. The ruling involved a case filed by the National Association for Fixed Annuities, which asked for a court order to place the Rule’s implementation on hold.
Today, brokers have to give only “suitable” advice to their customers. This often creates conflicts of interest, as brokers can steer clients toward investments that benefit the broker, rather than the client. While the Labor Department won this case, there are still other complaints and cases pending against the “Fiduciary Rule.” Hopefully this trend continues and the Fiduciary Rule will be here to stay – and in fact applied not only to retirement accounts but other accounts, as well.
Mentor Capital has always been proud to accept the fiduciary standard in all of its client relationships. Our top priority is the financial well-being and success of our clients. By holding ourselves to the highest standards, we assure clients that their interests will always come first.
You can find the full article here at: http://www.wsj.com/articles/federal-judge-rejects-trade-groups-challenge-against-retirement-advice-rule-1478300556