IBA Securities - Division of Broker Dealer Financial Services Corp.
Acting as a fiduciary carries a greater level of responsibility. Fiduciaries are bound to act in their clients' best interests. The regulatory framework around fiduciary status has been the subject of much attention and uncertainty in recent years. Adhering to a fiduciary standard gives your investment recommendations a greater weight and level of accountability. This standard requires you to take into account your clients' entire financial circumstances, making holistic wealth management services even more important.
The new DOL Fiduciary Rule makes one a fiduciary when a recommendation is made with respect to rollovers, transfers, or distributions from a Qualified Retirement Plan (including 401ks) or IRA -- which is collectively known as "retirement asset movement" -- and is paid a fee or other compensation as a result. In addition, the DOL Fiduciary Rule also includes existing retirement accounts for which you are advising. The retirement asset movement must be in the client's best interest. The advice regarding retirement asset movement and reasons why it is in the clients' best interest will need to be documented and maintained. As a result, one needs a number of processes and resources in place by June 9, 2017, when the rule goes into effect.