A rule unveiled by the Labor Department in 2016 (and initially on track to take effect this April) would attempt to move financial advisors from a suitability standard to a fiduciary standard. President Trump now has this rule under review to potentially rescind or revise.
Note the standard would only apply to tax-advantaged retirement accounts and not taxable investment portfolios.
Suitable = clients must receive recommendations that meet the objectives and means of an investor.
Fiduciary = clients must receive recommendations that meets the clients’ best interest, avoiding any compensation conflicts.
Prevent salespeople from impersonating financial advisors – ask which standard is followed.