Americans won hard-fought protections regarding the purity of their retirement advice last month. Now it’s up to the nation’s financial advisers to decide whether they’ll meet the letter — and spirit — of the historic investor protection regulation. The final rule contained several important concessions to the advice industry that will make implementation easier for financial advisers. But there still appears to be enough meat to the rule that advisers will have litigation to fear if they can’t prove their retirement advice prioritized the client over themselves.
Key Takeaways:
- The Justice Department had asked the court to not enjoin regulations that had been issued after six years of public comment, which the government called essential to the nation’s retirement security.
- More lawsuits against the fiduciary rule are still pending in Texas, Kansas and Minnesota federal district courts.
- Trump and his intended Labor secretary, Andrew Puzder, are seen as advocates for reduced regulatory burdens.
“A federal appeals court on Thursday declined to slap down the Department of Labor’s new fiduciary rule, which is intended to minimize conflicts of interest by brokers and financial advisors dealing with clients’ retirement accounts.”
http://www.investors.com/etfs-and-funds/retirement/dol-fiduciary-rule-survives-a-court-challenge/
Leave a Reply