June 9 was the effective date for the U.S. Department of Labor’s (DOL) rule requiring all financial professionals who provide investment recommendations to retirement accounts, including 401(k)s and IRAs, to adhere to a fiduciary standard of conduct. This means that, at least when they deal with retirement accounts, all advisors are held to a higher standard of conduct: they have a duty to act in the best interests of their clients, reveal any conflicts of interest, and clearly disclose all fees and commissions.
WE Family Offices has long been a supporter of the Fiduciary Rule, because giving advice that is in our clients’ best interests is in our firm’s DNA. Our clients will not see any changes as a result of this ruling, because WE Family Offices is an SEC registered investment advisor (RIA) and RIAs have always been held to a fiduciary standard. We will continue to act in our clients’ best interests and clearly disclose our fees as well as any conflicts of interest.
While the recent DOL rule does not change how we do business, we believe this is a step in the right direction toward putting investors first and improving access to trustworthy financial advice.
For more information about the Department of Labor rule, see this New York Times article, which explains what the new ruling does – and does not – cover.