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.

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.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
10 States With the Highest Sales Taxes
Tax Breaks

10 States With the Highest Sales Taxes

Before you embark on a shopping spree in any of the 10 worst states for sales taxes, make extra room in your budget.
June 16, 2021
12 Housing Stocks to Ride the Red-Hot Market
investing

12 Housing Stocks to Ride the Red-Hot Market

The U.S. has a housing shortage and a love affair with home improvement, both of which could create tailwinds for this group of housing stocks.
June 8, 2021

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Will the Stock Market Close for Juneteenth?
Markets

Will the Stock Market Close for Juneteenth?

Washington has passed legislation turning Juneteenth into a federal holiday, with immediate effect. Will the stock market close in observance?
June 17, 2021
10 Least Tax-Friendly States for Retirees
retirement

10 Least Tax-Friendly States for Retirees

When it comes to state and local taxes, retirees in these states are likely to pay more than retirees in other states.
June 17, 2021
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
June 17, 2021