Newspaper and television have been talking about the Department of Labor’s pending proposal of a new standard of fiduciary duty for anyone giving retirement advice. The proposed new regulations have many advisors shaking in their boots.
They fear a big disruption in their business plans, costing them sizably less revenue. No longer will they be able to specialize in high commission products that are merely “suitable” for prospects. If there is a suitable product or plan that is better ( i.e.offers lower commissions) for the prospect, the advisor is legally bound to propose it.