Now stockbrokers must do what is in the best interest of their customers-by applying a new regulation issued by the Dept. of Labor commonly referred to as the FIDUCIARY DUTY RULE. This rule should better protect customers from unscrupulous stockbrokers. Previously brokers did not have a Fiduciary Duty to their customers-investors. We found the following article interesting as Ms. Ahn does a great job explaining what you need to know.
The fiduciary rule is now in effect: What you need to know
Is your financial advisor working in your best interest? You’d think the answer would be “yes”, right? In reality, it’s more like “maybe” because some of the retirement advice you’ve been getting might just be suitable for you while also making your advisor richer, too.
But all that changes now as the much-anticipated fiduciary duty rule finally goes into effect on Friday. Under this new regulation issued by the Department of Labor, it raises the bar on the level of advice you’ll be getting for your retirement investments.
The rule requires financial professions of all types, including brokers, financial advisors or wealth managers, to act as a fiduciary, meaning they must act in the best interest of their clients. Before this rule went into effect, an advisor may have recommended financial products that are pretty good for you, but might have come with higher fees or commissions that benefit them. In a 2015 White House report under the Obama administration, the Council of Economic Advisors estimated that this conflict of interest costs investors $17 billion every year, read full article here: https://finance.yahoo.com/news/fiduciary-rule-takes-effect-today-need-know-151905463.html.
If you have any questions regarding fiduciary responsibility or questions regarding stockbroker negligence or investment fraud, please contact our law firm today, we offer free case evaluations!