Castle Rock Investing

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Positive Thinking – Fiduciary Rule

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Despite the news that advisers may not be legally required to provide advice that benefits their clients more than themselves (in the form of commissions and kickbacks) we’ve seen a lot of good come from the fiduciary rule already.

These are the four major benefits we’ve seen:

1. Many major investment companies are making changes to their fee structure. Several of them have said they will maintain these changes even if the rule is postponed.

Take a look at the following list of brokers who are changing their practice whether or not the Fiduciary Rule goes through:

A Complete List of Brokers and Their Approach to ‘The Fiduciary Rule’ - WSJ
A Complete List of Brokers and Their Approach to ‘The Fiduciary Rule’ – WSJ
Some brokerages have already rolled out a number of changes to comply with the fiduciary rule and are sticking with plans to improve disclosures to investors—regardless of the rule’s fate.

2. Investors are taking the time to educate themselves rather than blindly trust their advisers.

The following two articles are great examples of how investors are educating and empowering themselves to work with fiduciaries rather than commission based advisers.

How the Benefits of the DOL Fiduciary Rule Have Already Taken Root | IRIS
How the Benefits of the DOL Fiduciary Rule Have Already Taken Root | IRIS
When Linda and Bill came into my office, I could sense their hesitancy right away. And when they told me their story, I could understand why they were so apprehensive about meeting with a financial advisor. They had, quite simply, learned not to trust.

Ask your broker/adviser about the Fiduciary Rule

I thought it might be worthwhile to email my financial services company (Schwab) and ask them if they were planning to adhere to the standard of the proposed fiduciary rule despite Trump’s delay of its implementation. The answer I got back was polite,…
via: dailykos.com

3. Outlets are providing more and more education for investors.

Individuals are encouraged to arms themselves with information rather than trusting their adviser is always putting their best interests first:

The 21 Questions You’re Going to Need to Ask About Investment Fees - The New York Times
The 21 Questions You’re Going to Need to Ask About Investment Fees – The New York Times
Are financial advisers trying to part you from your money in ways you don’t understand? Ask them this set of questions.

4. Hundreds of advisers are coming out of the woodwork to declare themselves “Fee Only” and “Fiduciaries” whether or not the rule goes into place.

Take a look at some of the hashtags on twitter: #FeeOnly#Fiduciary and our personal favorite (our new hashtag) #FiduciaryDefender

As new information pours in daily, we’ll continue to do our part to defend the Fiduciary Rule and fight for applicability.

Don’t forget, there is still hope! This was definitely our favorite headline from last week:

Ask your broker/adviser about the Fiduciary Rule
I thought it might be worthwhile to email my financial services company (Schwab) and ask them if they were planning to adhere to the standard of the proposed fiduciary rule despite Trump’s delay of its implementation. The answer I got back was polite,…
The 21 Questions You’re Going to Need to Ask About Investment Fees - The New York Times
The 21 Questions You’re Going to Need to Ask About Investment Fees – The New York Times
Are financial advisers trying to part you from your money in ways you don’t understand? Ask them this set of questions.
DOL Wins Fiduciary Rule Case in Texas
DOL Wins Fiduciary Rule Case in Texas
Congress “gave the DOL broad discretion” to protect retirement investors, the decision says.
Until we hear differently, we’re going to continue thinking positively and counting down to the April 10th date!