Fiduciary standards are already in the process of rising on a state level, but the United States Department of Labor’s Fiduciary Rule may rise again on a grander scale.
United States Secretary of Labor Alexander Acosta is working with the Securities and Exchange Commission to revive the ruling, which would require brokers to handle retirement accounts in their clients’ best interests. The ruling took flight in the Obama-era, but was struck down in a federal appeals court in 2018.
While many US advisers insisted that they embraced the Fiduciary Rule, and were already acting as fiduciaries, both politicians and many in the industry were vehemently opposed to the ruling, believing it to be too stringent amongst other issues. Paul Ryan called the ruling “Obamacare for financial planners.”
However, InvestmentNews reports that those who didn’t care for the DOL’s Fiduciary Rule are warming to what the SEC is cooking up, while investor advocates view the potential package as coming up short.
Time will tell if the new Fiduciary Rule will have the power to hold brokers accountable for their work, or merely be a smoke and mirrors regulation.
