How the fiduciary rule works
All advisors now have to put your interests first
Sharon Epperson | @sharon_epperson
Wednesday, 6 Apr 2016 | 6:05 AM ET
….The Labor Department, which regulates tax-advantaged savings accounts, is bringing more investment advisors under an already existing rule known as the “fiduciary standard,” which requires financial advisors to put their clients’ best interests ahead of their own profits.
As of now, only financial professionals and firms registered as investment advisors with the Securities and Exchange Commission or individual states follow that rule. Brokers, insurance agents and most other financial professionals are held to a “suitability standard” which gives them significant wiggle room. That means they only need to make investment recommendations that are suitable for their clients, but not necessarily the best option….
That latter part will change in April 10, 2017 when the rule [pdf] goes into effect.
Representative Vicky Hartzler (r), via Twitter:
Rep. Vicky Hartzler@RepHartzler
Fell short of overriding president’s veto stopping the #fiduciary rule which denies seniors sound financial advice. Will continue fight. 9:39 PM – 22 Jun 2016
Only in the bizzaro world of right wingnuts would the concept that financial advisors placing the financial interests of their senior citizen investors first be considered bad for senior citizen investors.
Oh, and by the way, what else was going on?
Some of the responses to Representative Hartzler (r):
Gordon Jones @gordonsjones1
@RepHartzler no. The rule insures your “advisor” works in your best interest, not his. Shouldnt be necessary but is. 9:50 PM – 22 Jun 2016
Jerry Marks @jm268
@RepHartzler Vicky, so sorry to hear that you are one of the Reps in Wall Street’s pockets. Do you need he money that bad? 6:40 AM – 23 Jun 2016
@RepHartzler actually it denies financial advisors the right to lie to their clients in order to line their own pockets but tomato-tomahto 10:52 PM – 22 Jun 2016
@RepHartzler why wouldn’t I want someone handling my retirement to be required to give a shit about me?? Huh? Explain! 10:18 PM – 22 Jun 2016
Lein Shory @LeinShory
@RepHartzler To use seniors as an excuse takes unmitigated gall and a shriveled heart. You’re no better than those Nigerian email scammers. 8:21 AM – 23 Jun 2016
Jane Doe @thisisit_0
@RepHartzler why do u want “advisors” to not have to tell the truth? Another example of how you don’t work for the people but for the rich 12:36 PM – 23 Jun 2016
We knew that.