Commentary: The Department of Labor finally revealed its proposed
Specific elements of the rule include imposing a fiduciary duty on brokers, preventing conflicts of interest and exposing excessive fees.
This issue has been at the center of debate among advisers and other financial professionals since February when the Obama
I find myself siding with the latter group. If a person is going to portray him or herself as an adviser, they need to have some level of fiduciary duty to perform that role in the best interest of the client. Plan sponsors and individuals are often in the dark about the motivations behind the financial advice they receive. As the CFP Board showed in a
The rule will also play a role in how advisers get paid.
Another positive component of this is that it gives a skeptical post-2008 public one less reason to mistrust the finance industry. Of course theres still bitterness and cynicism lingering from the crisis, and rightfully so. However, I think the administration realized that those views were obstructing much of the middle class from adequately planning for retirement. As it stands, Social Securitys two trust funds will become
The rule, if enacted, will undoubtedly be tweaked over time, but its been a long time coming nonetheless. The DOL and the administration are taking a stand and looking out for the consumer. Its an important continuation of their heightened oversight of the past few years.
Mark Tan is a Chicago-based financial advisor with Thrivent Financial, a financial services organization that helps Christians be wise with money and live generously. Learn more about Mark at