With the Department of Labor and Securities and Exchange Commission creeping ever-closer to unveiling their proposed changes to the fiduciary standard, there’s little doubt that regulators are about to unleash big changes on stock brokers and insurance agents.
The very meaning of “investment advice” for retail investors may be fundamentally altered in what promises to be a watershed moment.
While brokers and advisors operate under different standards, they both offer clients investment advice. Regulators want a common fiduciary standard for those who provide personalized investment advice to retail clients.
No reason for despair
Before the rules take effect, advisory firms should decide which side of the fence they want to be on and start educating themselves about how to move forward once the rules are in place.