Advertisement
Financial Planning

Financial Planners Embrace the Fiduciary Rule

Certified financial planners aim to put you first at all times.

Back in June, it appeared that the Department of Labor regulation that requires financial professionals to act in the best interests of clients when giving retirement account advice would be implemented on schedule. Now the agency may push back full compliance to July 2019. But the self-regulatory body for CFPs is moving ahead to broaden its fiduciary standard to apply to all of its nearly 77,800 members.

The Certified Financial Planner Board of Standards requires CFPs to act as fiduciaries when providing financial planning, such as developing strategies to meet clients' goals. Now, it is proposing to require CFPs to comply with the standard whenever they give financial advice -- a change most likely to affect brokers and insurance agents who don't provide comprehensive financial planning. Securities brokers adhere to a less-stringent standard: Their recommendations must be “suitable” for a client. The DOL's fiduciary rule addresses concerns that some brokers steered retirement savers into investments with the highest fees.

Advertisement - Article continues below

The CFP board is reviewing public comments before deciding whether to adopt the proposal. If it does, the earliest it could take effect is next year.

Advertisement

Most Popular

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)
tax deadline

12 Tax Deadlines for July 15 (It's Not Just the Due Date for Your Tax Return)

Between due dates for IRA or HSA contributions, paying estimated taxes and other deadlines, there's more to do by July 15 than just filing your federa…
July 10, 2020
65 Best Dividend Stocks You Can Count On
stocks

65 Best Dividend Stocks You Can Count On

These 65 Dividend Aristocrats are an elite group of dividend stocks that have reliably increased their annual payouts every year for at least a quarte…
July 8, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020

Recommended

2020 Stock Market Holidays and Bond Market Holidays
Markets

2020 Stock Market Holidays and Bond Market Holidays

Is the market open today? Take a look at which holidays the stock markets and bond markets take off in 2020.
July 10, 2020
Saver's Credit: A Retirement Tax Break for the Middle Class
Tax Breaks

Saver's Credit: A Retirement Tax Break for the Middle Class

Your retirement contributions could be the key to a lower tax bill.
July 9, 2020
65 Best Dividend Stocks You Can Count On
stocks

65 Best Dividend Stocks You Can Count On

These 65 Dividend Aristocrats are an elite group of dividend stocks that have reliably increased their annual payouts every year for at least a quarte…
July 8, 2020
Avoid Blindly Following Random Benchmarks on the Road to Retirement
retirement planning

Avoid Blindly Following Random Benchmarks on the Road to Retirement

Unless the benchmark is relevant to your personal plan, it could steer you into taking a wrong turn.
July 8, 2020