Fiduciary Designation

By February 8, 2017 Ascendance

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.

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