In early June the first wave of the Department of Labor’s fiduciary standard went into effect. The rule requires professionals providing advice on retirement accounts to act in the best interests of their clients.
In theory it sounds great but for it to be effective the public must know who is/isn’t a fiduciary . . . and as the great businessman Ray Zalinsky tells it the American public is woefully uninformed.
In a recent survey by Jefferson National (now part of Nationwide) 48% of investors said they’d stop working with their advisor if they were not required by law to serve in their clients’ best interest. Contrast this with only 38% of investors indicating they’re aware of the DOL’s fiduciary rule. What’s more 59% of investors believe that all financial advisors are already required by law to put their clients’ best interests first.
Somehow the math just doesn’t add up.