By Michael Kay via Iris.xyz
If you’ve never heard about the endless drama surrounding the embattled Fiduciary Rule, I can well understand. It doesn’t hit the radar screen compared to the moment-to-moment goings on coming out of our nation’s capital. Allow me to catch you up.
During the days of the Obama Administration, the Department of Labor put forth a rule (I’m trying to keep this simple) requiring financial advisors to act in the best interest of their clients. The Trump Administration has asked for the rule to be reviewed (delayed).
Without getting into the politics of this, which is as clear as the nose on your face, there are ‘forces’ that see this rule as a threat to their profits.
Under current rules, advisors who are not acting as fiduciaries — acting in the best interest of their clients — fall under the FINRA regulations requiring that products sold are suitable. It’s easy to confuse and mislead consumers who are unfamiliar with the FINRA terms. Therefore, the words are less important than the meaning behind them; consumers should be screaming that they deserve to have their best interests served.
If you, the client, are not dealt with in a manner that is in your best interest, you have to ask the question: why aren’t your interests being served first and best?
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