The recent Department of Labor (DOL) ruling mandating that financial advisers be held to a fiduciary standard under the Employee Retirement Income Security Act of 1974 (ERISA) has had mixed reviews depending on who you talk to.
First, for our clients, it's important to point out what a fiduciary standard means. Simply put, an adviser (such as ours at GCW Capital) held to a fiduciary standard must put the interests of the client before their own.
At GCW Capital Group, LLC, we are in favor of holding all financial advice to a fiduciary standard and have in general supported the DOL's efforts to update this 40 year old rule. As an independent firm, we feel all advice should be in the best interest of the client. Eliminating the various incentives and conflicts of interest that many financial advisers have and creating an industry standard will ultimately benefit the client.
Of course, there are a lot of moving parts to this new law and over the coming weeks we will be analyzing the specific aspects of the rule to see how it impacts our clients and our advisers. We look forward to sharing more with you as the national dialogue continues.
Below are a couple of links to a more detailed explanation of this new rule. Don't hesitate to call with any questions.