Ever heard of “fiduciary duty“? Probably not. Basically, it means “acting in the client’s best interest.” As a Trust Company and a Registered Investment Advisor (RIA), LNWM has always been required to act as a fiduciary, in its clients’ best interest, in all our operations and client accounts. But many other types of advisors and broker/dealers are not held to this high standard, as we explained in a blog post last March.
But that’s about to change to a significant degree, which we’re glad to hear. Today, the US Labor Department issued new regulations that will require any financial advisor and broker overseeing IRAs and 401(k)s to actually act in the best interest of their clients — which might be overlooked in the rush to generate sales commissions, fees and other benefits for advisors. Mind you, this new rule would apply just to retirement accounts; regular accounts won’t be held to the same standard.
To find out more about fiduciary duty, read our blog post “Advice That’s In Your Best Interest.”