The Fiduciary Rule and You

The Department of Labor (DOL) has issued its final version of the fiduciary rule regarding retirement accounts.  The issue that the DOL is trying to address is that broker-dealers (major investment firms like MLPFS, UBS, etc.) do not have to act in their clients’ best interest.  They only have make recommendations that are “suitable.”  What that means is that if a broker-dealer representative has the choice between recommending two investments, they can recommend the one that pays them more, as long as the recommendation is suitable. That may not be in the client’s best interest.

The “fiduciary” standard requires an investment advisor to recommend the investment that is in the best interest of the client.  That often results in lower costs to clients.  Korving & Company is a pure RIA (Registered Investment Advisor) and is a fiduciary.   We do not offer commission-based products and offer our clients the lowest cost versions of appropriate investments.

The DOL rules apply to retirement accounts like 401(k) and IRAs.

For questions about the fiduciary rule, contact us.

Tagged , , ,
%d bloggers like this: