In recent years, the financial industry has changed. Consumers are more skeptical than ever before, and prefer a pay-for-advice model, rather than a transaction-based model. The Department of Labor’s new fiduciary rule is a push in that direction, urging financial professionals to adopt more popular and consumer-friendly practices and pricing models.
While some are concerned about the rule’s effect on their business, it may not have as many far-reaching consequences as expected. For example, those who work with mutual funds, create retirement plans, act as broker-dealers, or sell insurance will be able to continue to sell the same products. The only caveat is that now, financial professionals are required to provide clients with additional disclosures, and have them sign off on a Best Interest Contract Exemption.
Even though this law may not be as harsh as initially expected, advisors still have concerns about how their business will be affected. Luckily, Bridge has compiled an FAQ to answer all your questions and concerns.
Download Bridge's Fiduciary Rule FAQ.