Why You Don’t Need to Worry About the Fiduciary Rule

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Why You Don't Need to Worry About the Fiduciary Rule

(New York)

There has been a lot of fretting over the fiduciary rule in the advisor community and understandably so. However, powerhouses Pershing and Morningstar say that advisors have nothing to fear from the new rules. The duo want BDs to know that the rule will not "force broker-dealers into a rigid, unworkable model", according to Financial Planning. Each firm will be able to deal with the rule in its own way, allowing much flexibility, say Pershing and Morningstar. Even the DOL has embraced flexibility, saying that firms need only act in the best interest of clients, yet how they do so remains up to them.

FINSUM : There are a lot of downsides to this rule, but perhaps one of the few silver linings is that it does not formally impose any rigid structure on firms.

  • fiduciary rule
  • DoL
  • Pershing
  • morningstar

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Wealth Management

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