What are you doing in anticipation of the proposed fiduciary rule?
We’ve all been bombarded with numerous articles about the fiduciary rule proposed by the Department of Labor (DOL). We’ve read how the new rule is being aggressively pursued by the DOL and the current White House Administration. What has been your response? Proactive or reactive?
Can we be proactive in planning for the changes rather than taking the “ostrich approach” and just waiting for the final outcome? While we know that a fiduciary must exercise care, skill, diligence, and objectivity in evaluating, recommending, and reviewing investment options, the question remains: “Who exactly will be considered a fiduciary under the new rule?” While experts have opined on the rule’s anticipated details, the final answers are yet to be determined…but will be coming our way soon.
In order to demonstrate commitment to prudent investment planning, training, and ethics, additional fiduciary training is a necessity for individuals who handle accounts that will be affected by the new regulations. A great suggestion is to partner with a leading fiduciary training expert like fi360, a firm that offers exclusive fiduciary training events and software tools.
While the DOL has yet to implement the rule changes, they have now sent a final draft to the Office of Management and Budget. Has your broker-dealer proactively positioned itself ahead of these possible changes? We feel that additional fiduciary training will aid in the growth of our advisors’ practices as opportunities become available for those who hold the appropriate credentials. According to Melanie Waddell (ThinkAdvisor, Waddell, 2012), “The No. 1 complaint in Financial Industry Regulatory Authority (FINRA) arbitration cases is breach of fiduciary duty.” This factual underpinning adds to the importance of advisors proactively seeking this training. As public awareness increases about fiduciary responsibilities, some advisors will be ahead of the curve and be able to act on opportunities, differentiating themselves from those who lag behind.
Have you thought about these opportunities? We have….
 Waddell, M. (2012, 10 23). Breach of Fiduciary Duty Most Common FINRA Complaint. Referenced at www.thinkadvisor.com: http://www.thinkadvisor.com/2012/10/23/breach-of-fiduciary-duty-most-common-finra-complai