(May 29, 2017) Part of the fiduciary rule, requiring advisors to place the interests of investors ahead of their own, will go into effect on June 9, 2017. Alexander Acosta, the Labor Department secretary, said the rule cannot be postponed, even as the Department of Labor continues its examination of the law. Full implementation of the rule, unless delayed or modified (which is possible), is scheduled for January 1, 2018.
We believe this rule falls meaningfully short of ensuring access to conflict-free advice. Please see our critique of the fiduciary rule here. Remember, the rule only applies to retirement accounts and is full of loopholes. Worst of all, the rule could be “watered down” even further, creating additional confusion among investors.
Remember, the only full-time fiduciaries in the wealth management industry are “fee-only”, independent advisors. Sunrise Advisors is proud of our fiduciary commitment to our clients.