The financial services industry is eagerly awaiting the release of the Department of Labor’s (DOL) final rule on a revised fiduciary standard. According to the Wall Street Journal, the final rule will be unveiled April 6. The Department’s initial draft of the rule was met with controversy resulting in thousands of written comments by interest groups, advisory firms, Congressional members, and concerned citizens. Bukaty Companies’ comments were submitted this past July.
The DOL indicated it considered all comments to develop the final rule. It is expected that the final rule will substantially impact how services will be provided to ERISAbased retirement plans, as well as individual retirement accounts (IRAs). At the core of the new rule is the expansion of a broker’s responsibility to act as a “fiduciary” when making investment recommendation on retirement accounts. Currently, a broker’s advice only has to be “suitable.”
Bukaty Companies Financial Services division acknowledges it is acting in a fiduciary capacity, and therefore there should be little effect on clients. For plan sponsors whose broker doesn’t serve in a fiduciary capacity, the new rule will impose extremely onerous requirements.
For more information contact Bukaty Companies Financial Services President Vince Morris at 913.338.5300.