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Trump Rolls Back Fiduciary Rule

So, after all the buildup and shifting of financial advising strategies throughout the industry to comply with the Department of Labor’s (DOL) Fiduciary Rule – which would apply a fiduciary standard to any advisor dealing with retirement planning, the President Trump has issued an Executive Order rolling back that rule and preventing it from going into affect. But, will it have that substantial of an impact? Maybe not.

Most Firms Have Already Changed

This ruling from the DOL has taken quite a while for firms to adapt. Some have left the market entirely. This is all well before the deadline for the rule to go into affect. Training, internal policies, marketing, and internal regulations have already been changed in anticipation of this rule. It’s unlikely that all of that work will just be undone just because the ruling was withdrawn. Some advisors, Certified Financial Planners (CFPs) for instance, already held themselves to a fiduciary standard, and the rule or lack thereof will not change that.

There Will Be Some Who Take Advantage

There are currently, and now will still be, some “financial advisors” who take advantage of people and sell them products that are not in the client’s best interests. The DOL rule was meant to prevent this sort of thing from happening. Now, advisors who may have been substantially impacted by the rule will now be spared – and that’s potentially dangerous for the general public.

Caveat Emptor (Buyer Beware)

For now, consumers will largely be on their own when it comes to determining whether an advisor has their best interests at heart when developing a financial plan. If you find yourself seeking a new advisor (or are seeking one for the first time), do your research and inquire whether the advisor is a fiduciary or whether he or she holds himself or herself to a fiduciary standard.

Author Bio

Paul Yokabitus

Paul Yokabitus is the CEO and Managing Partner of Cary Estate Planning, a Cary, NC, estate planning law firm. With years of experience in estate and elder law, he has zealously represented clients in various legal matters, including estate planning, guardianship, Medicaid planning, estate administration, and other cases.

Paul received his Juris Doctor from the Campbell University School of Law and is a North Carolina Bar Association member. He has received numerous accolades for his work, including being named among the “Best Attorney in Cary” in 2016 and 2017 by Cary News and Rising Star in 2020-2023 by Super Lawyers.

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