Solutions 4 Financial Independence: 11/01/18
Question: Today’s question comes from Terri from Weston. Terri writes “I heard you talk a lot about the Department of Labor Fiduciary standards that were going to be put in place. Whatever happened to those rules and do advisors have to follow them?”
John Halterman: Hey Terri, I'm glad you asked, because fiduciary standards, especially uniform fiduciary standards, is definitely something that is much, much needed in our industry, because over the years, advisors, or what I consider to be sales people, have been notorious for being product sales people vs. providing professional advice, and our industry definitely needs to have fiduciary stands for all products, to where they put the interest of the client first in all situations. Now, I got to tell you, those fiduciary standards that were proposed, have actually been axed, the reason why? The Obama administration was just a little overzealous. They probably overstepped their boundaries, because they made it the Department of Labor, which means it only affected qualified accounts such as IRAs and 401ks. It should be applicable to everything. So, when the Trump administration came in, they basically axed it and said "ok, we're going to do this the right way." So, now it’s being done by the SCC, who runs the Securities Industry and who should've already done this type of industry's fiduciary standards. So, during the process of coming out with new standards, definitely all advisors, it’s going to be applicable to them. It's definitely going to be something that's in the interest of the client, but at the same time, fair to the Securities Industry. So, I'm looking forward to it, it should roll out in the next two years, but definitely something that's going to be needed and a win for everybody involved.