In a nutshell, the Dept. of Labor's new rules would have required anyone who gives advice about retirement plans to be held to a fiduciary standard: the investor's welfare must be placed above the interests of both the adviser and his firm. What, you say? Don't they do this already? Um, no.
So how could reversal of this rule possibly be "good"? At least two reasons.
- Because it will be a great differentiator between those of us who already submit ourselves to a ficudiary standard and those who do not. And all you have to do is ask, "Are you a legal fiduciary, and, do you hold yourself to a fiduciary standard in all areas of your practice?"
- Laws and regulations are great but the #1 most effective consumer protection is smarter more careful consumers. Spend some time at the Investor Protection Trust (while it still exists).
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