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Information on the new fiduciary rule

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  • Information on the new fiduciary rule

    The rule is scheduled to go into effect April 4. This article is a warning to RIAs (Registered Investment Advisors) that we should not expect an automatic free pass. No problem here. But what I found even more interesting was this article I ran across when looking for information on on BICE (Best Interest Contract Exemption). [btw - is it any surprise the the National Association of Life Underwriters has a problem with this requirement?]

    According to the article, the new fiduciary standard applies only to retirement accounts. That is, taxable accounts that you are may plan to use for retirement do not fall under the protection of the new fiduciary standard, just tax-free and tax-deferred accounts such as 401k's and IRAs. I must confess that I was unaware of this distinction until doing my homework. In case others are not, you should be aware that you and family members working with an investment advisor will not have protections under the new rule if you are investing outside of a tax-qualified retirement account. Note Scenario #4 in the table in the article I referred to above.

    Personally, I welcome the rule, even though I lean libertarian. It will be interesting to see what "former" non-fiduciaries will do to get around the regulations.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

  • #2
    Interesting that it only applies to retirement accounts. Ridiculous to take advice from someone who isn't a fiduciary anyway.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3




      Ridiculous to take advice from someone who isn’t a fiduciary anyway.
      Click to expand...


      Of course it is, once an investor understands what a fiduciary is and why it matters. I cannot imagine that anyone would actively choose not to use a fiduciary. That shows how good the industry is at obfuscation.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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