Terry Sawchuk Founder & Chairman
You may have heard reports in the news that our President has signed an executive order pertaining to the Department of Labor’s (DOL) Fiduciary Duty Rule or “Conflict of Interest” Rule. The order requires that the DOL reanalyze the tenets of this Rule, which applies only to retirement accounts administered under Employee Retirement Income Security Act (ERISA), to ensure that it does not adversely impact the manner in which Americans like you can receive financial advice. I believe that certain media have unfairly characterized this action as the “rolling back” of a consumer protection rule.
As a financial advisor, I greatly support the goal of investor protection for all investor assets, not only those in the retirement savings marketplace. As a client who has entered into an advisory agreement with me/my firm, you know that I am required to act in a fiduciary capacity as a result of that agreement. However, I strive to do what is in the best interests of my clients in every interaction and I am a firm believer that all financial advisors should do the same. I wholeheartedly support appropriate regulation and full transparency for investors. In fact, I am required to follow the rules of the SEC, FINRA, and state securities regulators, in addition to annual ongoing reviews from my broker-dealer. I may also be subject to an examination or inspection by these agencies at any time. To be completely clear, I take the responsibility of providing financial advice to you very seriously.
However, there are many in the industry that believe the Fiduciary Rule set for implementation this spring could have negatively impacted Americans’ ability––especially those of modest means––to save for retirement. I think the delay of implementing this rule while it is further vetted is the right thing. My ultimate hope is that consumers and advisors alike benefit from a fiduciary standard that applies to all investment advice and is not overly complex but easy to understand.
I will continue to monitor these developments over the coming months. In the meantime, thank you for allowing me the privilege of helping you achieve your financial goals. Please don’t hesitate to reach out to me should you have any questions.
Visit www.sawchukwealth.com to review past issues of The Marketview.
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