{"id":2770,"date":"2016-04-25T00:00:00","date_gmt":"2016-04-25T04:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/new-fiduciary-duty-rule-governing-retirement-accounts\/"},"modified":"2018-10-08T12:39:28","modified_gmt":"2018-10-08T16:39:28","slug":"new-fiduciary-duty-rule-governing-retirement-accounts","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/new-fiduciary-duty-rule-governing-retirement-accounts\/","title":{"rendered":"The New Fiduciary Duty Rule Governing Retirement Accounts"},"content":{"rendered":"<\/p>\n

While it has been argued by investor advocates for a long time that a fiduciary duty applies to those individuals that give investment advice to others, the Department of Labor<\/a> (DOL) finally put the issue to rest with respect to retirement accounts.\u00a0 After six years in the making, the DOL put forth a rule that redefines who is a retirement investment advice fiduciary<\/a>.\u00a0 The rule is designed to protect investors who obtain investment advice for retirement accounts from stockbrokers, insurance agents and other types of financial advisor who \u201cput their own profits ahead of their clients\u2019 best interest.\u201d\u00a0 Several provisions of the rule are expected to take effect April 2017 with full compliance required by January 1, 2018.<\/p>\n

Under the rule any person that is paid to give advice to a plan sponsor (e.g., an employer with a retirement plan), plan participant or IRA owner is now to be considered a fiduciary.\u00a0 The fiduciary standard would also apply to advisors that provide advice as to whether to rollover money from an employer-sponsored retirement plan (e.g., 401(k)) to an IRA.\u00a0 The new rule is meant to do away with possible conflict of interests by increasing fee disclosures and requiring the investment adviser to always put the investors\u2019 best interest first.\u00a0 Previously, a financial advisor\u2019s recommendation was only required to be \u201csuitable\u201d meaning that if there were a couple of products that fit the investor\u2019s investment objectives and risk tolerance, the advisor could pick the one with the higher commissions and fees which would lower the possible return instead of what was in the best interest of the investor.<\/p>\n

Legal challenges to the rule from the Securities Industry are expected.\u00a0 However, according to several news stories the DOL is confident that the new rule will survive legal challenges<\/p>\n

Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

While it has been argued by investor advocates for a long time that a fiduciary duty applies to those individuals that give investment advice to others, the Department of Labor (DOL) finally put the issue to rest with respect to retirement accounts.\u00a0 After six years in the making, the DOL put forth a rule that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[580],"tags":[],"class_list":["post-2770","post","type-post","status-publish","format-standard","hentry","category-stockbroker-misconduct"],"yoast_head":"\nThe New Fiduciary Duty Rule Governing Retirement Accounts — Securities Arbitration Lawyers Blog — April 25, 2016<\/title>\n<meta name=\"description\" content=\"If you have questions about how your retirement account has been handled, contact the experienced securities attorneys at Silver Law Group today\" \/>\n<meta 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