LarkspurRixtrema
Expert
- 31
It’s been a while since the battle between federal fiduciary rule advocates and the financial services industry started. The U.S. Department of Labor rule is designed to oblige financial advisors to act in the best interest of clients when providing advice on investments in retirement plans. But it is an open question whether the rule has a future or not. President Trump has ordered a new analysis of the rule focused on its relevance, and The U.S. Court of Appeals for the Fifth Circuit voted to bring down the DOL rule in March (a decision that was not appealed by the DOL), while the U.S. Securities and Exchange Commission is developing their own version of the fiduciary rule to be unveiled this summer.
Given this uncertainty, some states are enacting or considering their own fiduciary rules. Lawmakers in Nevada passed a law in July 2017 that extends the DOL Fiduciary Rule to include stockbrokers and other investment representatives into the framework and applies to both retirement and non-retirement accounts. Such advisers are obligated to disclose commissions or profits they make on their client’s investments.
Read more: Here's What People Are Saying About State Fiduciary Rules -
Given this uncertainty, some states are enacting or considering their own fiduciary rules. Lawmakers in Nevada passed a law in July 2017 that extends the DOL Fiduciary Rule to include stockbrokers and other investment representatives into the framework and applies to both retirement and non-retirement accounts. Such advisers are obligated to disclose commissions or profits they make on their client’s investments.
Read more: Here's What People Are Saying About State Fiduciary Rules -
