Department of Labor Fiduciary Rule: What It Means for You

The Department of Labor (DOL) Fiduciary Rule is a federal regulation that requires financial professionals to act in the best interest of their clients when providing investment advice. This rule has been in the works for several years and is set to take effect on April 10, 2017.

The DOL Fiduciary Rule is designed to protect investors from conflicts of interest that can arise when financial professionals are compensated based on the products they sell. Under the rule, financial professionals will be required to:

• Act in the best interest of their clients.
• Avoid conflicts of interest.
• Provide clear and concise disclosures about fees and conflicts of interest.

The DOL Fiduciary Rule is a significant change in the way financial professionals are regulated. It is important to understand the rule and its implications if you are working with a financial professional.

What the DOL Fiduciary Rule Means for You

The DOL Fiduciary Rule means that financial professionals must put your interests first when providing investment advice. This means that they must:

• Recommend investments that are in your best interest, even if they do not earn the financial professional a commission.
• Avoid conflicts of interest, such as recommending investments that they own or have a financial stake in.
• Provide clear and concise disclosures about fees and conflicts of interest.

The DOL Fiduciary Rule is designed to protect investors from conflicts of interest that can arise when financial professionals are compensated based on the products they sell. By requiring financial professionals to act in the best interest of their clients, the rule helps to ensure that investors are getting the advice they need to make informed investment decisions.

What You Can Do to Protect Yourself

There are a few things you can do to protect yourself and ensure that your financial professional is acting in your best interest:

• Ask your financial professional about their fees and conflicts of interest.
• Make sure you understand the investments that your financial professional is recommending.
• Get a second opinion from another financial professional.

The DOL Fiduciary Rule is a positive step towards protecting investors. By following these tips, you can help to ensure that your financial professional is acting in your best interest.

Frequently Asked Questions

Q: What is the DOL Fiduciary Rule?

A: The DOL Fiduciary Rule is a federal regulation that requires financial professionals to act in the best interest of their clients when providing investment advice.

Q: When does the DOL Fiduciary Rule take effect?

A: The DOL Fiduciary Rule takes effect on April 10, 2017.

Q: Who is affected by the DOL Fiduciary Rule?

A: The DOL Fiduciary Rule affects all financial professionals who provide investment advice to retail investors. This includes brokers, investment advisers, and insurance agents.

Q: What are the key provisions of the DOL Fiduciary Rule?

A: The key provisions of the DOL Fiduciary Rule include:

• Financial professionals must act in the best interest of their clients.
• Financial professionals must avoid conflicts of interest.
• Financial professionals must provide clear and concise disclosures about fees and conflicts of interest.

Q: What are the benefits of the DOL Fiduciary Rule?

A: The DOL Fiduciary Rule is designed to protect investors from conflicts of interest that can arise when financial professionals are compensated based on the products they sell. By requiring financial professionals to act in the best interest of their clients, the rule helps to ensure that investors are getting the advice they need to make informed investment decisions.

Q: What should I do to protect myself under the DOL Fiduciary Rule?

A: There are a few things you can do to protect yourself and ensure that your financial professional is acting in your best interest:

• Ask your financial professional about their fees and conflicts of interest.
• Make sure you understand the investments that your financial professional is recommending.
• Get a second opinion from another financial professional.