In case you missed it while you were busy with your daily duties, the DOL Rule (aka Conflict of Interest Rule) went live on June 9th. It only took 7 years to draft, craft, and compromise against fierce resistance from lobbyists, politicians, and financial institutions. Implementation had been scheduled for April, but the new administration delayed certain provisions until January 1, 2018.
Past Isn’t Always Prologue
Though the future of the Rule is less than certain, the awareness it has helped engender is here to stay. The motivating factor behind the Department of Labor’s push was to create fee transparency. No longer is it legal to use deceitful and misleading tactics to sell overpriced, under performing products to clients in retirement accounts (IRAs and 401ks). Indeed, under the DOL Rule insurance reps and brokers will now be required to put client interests first. Meaning they must now accept fiduciary duties they have legally avoided in the past. That is good for your money.
Of course, the compromises created exemptions and legal workarounds. The mandated disclosures are neither standardized nor always easy to discern. Yet they still allow an inquisitive financial consumer to know the price of the services you are buying and make more informed choices for your financial security. That is also good for your money.
Jerry Matecun helps business owners to understand and manage retirement plan risks and responsibilities, as well as help participants understand saving, investment, and distribution strategies vital to retirement readiness. For a no cost, confidential conversation regarding your retirement plan call or email Jerry at 949-273-4200, 616-499-2000, or jerry@compoundvalue.com.
PLEASE NOTE: Nothing herein or elsewhere on this site constitutes investment, legal, or tax advice. For details please see Disclosure.
