{"id":1602,"date":"2018-08-20T21:15:21","date_gmt":"2018-08-21T02:15:21","guid":{"rendered":"https:\/\/www.rixtrema.com\/blog\/?p=1602"},"modified":"2020-02-22T07:14:19","modified_gmt":"2020-02-22T12:14:19","slug":"staying-committed-to-dol-fiduciary-rule","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/staying-committed-to-dol-fiduciary-rule\/","title":{"rendered":"Staying Committed to the DOL Fiduciary Rule"},"content":{"rendered":"

The fiduciary rule we all hear about reminds me of a roller coaster ride:\u00a0 first it seemed imminent after the regulation was initially created under the Obama administration, then President Trump issued a memorandum that attempted to delay the rule’s implementation, then the newly appointed Labor Dept. Secretary Alexander Acosta confirmed that the fiduciary rule would not be delayed beyond June 9, and then, before that could happen \u2013 on March 15, 2018 \u2013 The Fifth Circuit Court of Appeals vacated the fiduciary rule in a 2-1 decision, saying it constituted “unreasonableness,” and that the Dept. of Labor’s implementation of the rule constitutes “an arbitrary and capricious exercise of administrative power”. Yet, the ride doesn\u2019t stop there.<\/span><\/p>\n

There is still a lot of debate around the rule among all parties involved in the process, with the Securities and Exchange Commission proposing a new rule which has been recently scrutinized by Congress<\/span><\/a>. This current state of affairs has created a divide in the camps of various RIA\u2019s, broker-dealers, advisers, etc. who server retirement accounts. Some of the professionals in the advisory business expressed a sigh of the relief because all the necessary measures that must be put in place to meet the new standards can be postponed indefinitely. But there a lot of different size companies and individual advisors who decided to go with the rule since they appreciate the change this rule offers and the value of core standards put forth by the rule.<\/span><\/p>\n

For example, Merrill Lynch has no plans to revise its ban on commission-based retirement accounts in spite of a blow inflicted on the Department of Labor\u2019s fiduciary standard rule by the federal appeals court. \u201cI\u2019ve been gratified to hear many of you express pride in the position we\u2019ve established and we remain committed to our approach,\u201d Merrill Lynch Global Wealth Management head Andy Sieg wrote in a memo to nearly 15,000 brokers employed by the firm. To continue, Andy Sieg added,\u00a0 \u201cWhile there is uncertainty regarding the DOL\u2019s next steps in light of this decision, our core strategy\u2014consistent with our principles\u2014remains that we always will act in our clients\u2019 best interest\u201d.<\/span><\/p>\n

Also, Edward Jones, the largest broker-dealer as measured by its sales force of more than 16,000 advisors, will not rush to amend its fiduciary rule policies. \u201cWe\u2019re not making any changes as a result of this ruling in the Fifth District,\u201d said company spokesman John Boul. \u201cWe\u2019re obviously monitoring it closely and analyzing what the court said, but we\u2019re not making any changes as a result.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The fiduciary rule we all hear about reminds me of a roller coaster ride:\u00a0 first it seemed imminent after the regulation was initially created under the Obama administration, then President Trump issued a memorandum that attempted to delay the rule’s implementation, then the newly appointed Labor Dept. Secretary Alexander Acosta confirmed that the fiduciary rule… <\/p>\n

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