For my weekly post at Physician's Money Digest (PMD), we will be talking about Department of Labor (DOL)'s new fiduciary rule and what it means for individual investors like you and me. Go HERE to read the full post. An excerpt is provided below:
If you have been following the financial news recently, you may have heard about Department of Labor's (DOL) new fiduciary standard rule - also known as the Conflict of Interest rule. The new rule requires all financial advisors and brokerages who offer retirement investment advice to put their client's interest ahead of their own. There has been a lot of word-slinging about the subject in the last 2 months, now the dust has settled a little, let's review what this means for you...
The "Fiduciary Standard"
A fiduciary is expected to act in the best interest of his/her client. The prototypical fiduciary relationship is your medical practice - you are expected and legally required to act in the best interest of your patients and put their interests before your own if a conflict of interest arises. The fiduciary standard is not a new concept in the world of investment advising. In fact, it was initially codified in the Investment Advisers Act of 1940. However, up until DOL's recent ruling, many investment advisors were not governed by the fiduciary standard. Rather they operated under the much more lenient suitability standard.
To read the rest of this post, check out the full post at PMD!