The DOL Fiduciary Rule: What Does It Mean for Your Money?
By Holly Johnson
In case you haven’t heard about the DOL fiduciary rule, here’s the gist of it: The Obama Administration came up with the idea of a fiduciary rule that governs financial advisors and other financial professionals. The rule, which has shape-shifted a few times since then, was intended to govern best practices of financial professionals, requiring all financial professionals to be elevated to the standard of “fiduciary” – meaning they must act in the best interest of their clients and disclose any potential conflicts of interest.
“The fiduciary rule will help to ensure that financial institutions act in investors’ best interests when providing retirement advice,” notes Seth Rosenbloom, associate general counsel at Betterment. “Effective June 9, the rule requires anyone who provides retirement investment advice for a fee to act in the best interests of their customers. Additional investor protections will go into place in early 2018, unless the rule is modified or delayed by the Department of Labor.”