3/1/17 – The DOL has extended the Fiduciary Rule start date to June 9, 2017 (originally April 2017). That gives you plenty of time to take our FREE course before it goes into effect. 

 

The 2017 Department of Labor (DOL) new fiduciary rule changes the way the financial industry delivers retirement investment advice. The essence of the plan is: When an advisor provides advice, it must be in the best interests of the client and not for the benefit of the advisor and his compensation.

Advisors must mitigate their conflicts of interest that may influence their advice. Examples of a conflict of interest include:

  • Moving a client from a fee-only product (handled by fee only advisors) to one with commissions paid to the advisor. Or, conversely, from a commissioned account to a fee-based product where the advisor charges fees.
  • Placing a client in a certain product where higher commissions are paid.
  • Soliciting a client to roll money out of an existing retirement account into one managed by the advisor where limited product choices exist.
  • Putting a full 30 percent of a client’s nest egg into a particular variable annuity where you received a commission and not another annuity where you could not receive compensation.

We’ll bring you more on the Fiduciary Rule in upcoming newsletters. Or, you can take our FREE DOL Fiduciary Rule Course (Life Agents Only) . . . get 1 hour of CE credit at no cost! Go to www.ceclass.com, choose Course #215.