Did you know that when you pay for investment advice, your adviser might not always have your best interests at heart? Yes, investment advisers are currently legally allowed to sell you products with their own financial gains in mind, even if it means that the products have a high price tag or pay excessive commissions. This is ridiculous, we know, but there is good news for investors on the horizon!
On April 8, 2016, the DOL released its final “Conflict of Interest Rule” to update the definition of fiduciary investment advice under the Employee Retirement Income Security Act (ERISA). The new rule will protect investors by requiring all who provide retirement investment advice to plans and IRAs to abide by a ‘fiduciary’ standard, which basically means that they must put their clients’ best interests ahead of their own financial gains.
What does this new regulation mean for average investors? It is a big win for them. Castle Rock Investment Company applauds the new regulation since it empowers investors to be given the best advice possible as they make crucial decisions about their retirement savings plans. If you have questions about the new fiduciary regulation, please contact us at firstname.lastname@example.org or via phone at 303.719.7523.