|Here you go America. You're welcome.|
After six years of debate and lobbying, the Labor Department rolled out a major new regulation on Wednesday that will require virtually all financial advisers to legally act in their clients’ best interests.
Known as the fiduciary rule, the new standards are aimed at cutting down on the unnecessary fees that Americans pay to brokers who advise them on their retirement investments. The White House says the rule will address a fundamental conflict of interest within individual retirement accounts, or IRAs — that many brokers, who aren’t legally bound to act in their clients’ best interests, have a financial incentive to shepherd clients toward investments that come with high commissions, regardless of whether it’s right for the customer.
Administration officials say the change will put the law regarding retirement funds on par with that of pensions. Pension trustees and administrators are considered “fiduciaries,” who therefore have a legal obligation to act in the client’s best interests. But when it comes to retirement advice, until now only financial advisers registered with the Securities and Exchange Commission have been considered fiduciaries, so brokers were held to a lesser standard.
This man is already an incredibly tough act to follow, but if he keeps this up somebody better start making some space on Mt. Rushmore.