Menu

Is the fiduciary rule dead?

Home Financial Advisors Is the fiduciary rule dead?

  • Avatar Dusn 
    Participant
    Status: Physician
    Posts: 163
    Joined: 01/02/2018

    This may be old news to many of you but it somehow slipped under my radar until just now.  I was under the impression that if a financial advisor calls themselves a “fiduciary” they’re legally obligated to try to act in their client’s best financial interest.

    But apparently the current administration has killed this rule?  Really?     I don’t see how this helps anyone; there’s no way I’m ever hiring a financial advisor if there’s no way to ensure that they’re acting in my best financial interest.

    The Trump administration’s attempt to dismantle the fiduciary rule: A year in review

    #135576 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3791
    Joined: 01/08/2016

    They did it to protect the consumer, and business, and America! …… Shills…..

    #135608 Reply
    Liked by JBME, Hank
    Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 1998
    Joined: 03/01/2018

    I thought I read a summary court opinion earlier this year maybe after the federal court case where the ruling was something to the effect of: if the car salesman isn’t mandated by law to sell you the best car for your personal situation, but rather can try to sell you the car that makes the salesman the most money, then why shouldn’t the Edward Jones agent be able to do the same thing?

    Wish I could find it.

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #135609 Reply
    Hank Hank 
    Moderator
    Status: Attorney
    Posts: 1228
    Joined: 03/27/2017

    Of course it wouldn’t seem unreasonable to have the Edward Jones guy wear a sign that says “I’m held to the same high standard of looking out for your best interest as a used car salesman”.   😆

    #135621 Reply
    Avatar pulmdoc 
    Participant
    Status: Physician
    Posts: 425
    Joined: 09/19/2016

    Short answer: yes, it’s dead since federal court struck it down and Trump administration is not inclined to continue the court battle since they wanted it to die.

    Longer answer: the fiduciary rule only applied to financial advice in the context of ERISA (401k, pension, IRA) governed plans. It was never going to keep your golf buddy from trying to sell you whole life insurance.

    #135626 Reply
    Liked by CordMcNally, Peds
    Avatar ChaseD702 
    Participant
    Status: Student
    Posts: 14
    Joined: 03/01/2018

    How much was this regulate prior to the rule being struck down? I heard that many were claiming to be fiduciary prior, but were (like stated above) only able to sell one or limited products. So even if not the best for the customer, they would still due the typical sales-person routine.

    One of the other podcasts I recently became aware of (Financial Detox) seems to cover some of this. But also that “adviser” may have restrictions put on? Now I have no idea who to trust…

    #180210 Reply
    Avatar Steven Podnos MD CFP 
    Participant
    Status: Physician, Financial Advisor
    Posts: 134
    Joined: 09/21/2017

    It is not hard to find a true fiduciary.  Go to napfa.com and find a fee only planner there.  Ask them to sign a fiduciary oath http://www.thefiduciarystandard.org/fiduciary-oath/

     

    (they all will).  Done!

    #180266 Reply
    Liked by Hank, MPMD
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2255
    Joined: 01/03/2017

    I like to think that those who are a going to be a true fiduciary don’t need a law or regulation to tell them that.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #180270 Reply
    Avatar Panscan 
    Participant
    Status: Resident
    Posts: 789
    Joined: 03/18/2017

    Ya because there were no sleezeball salesman pretending to be financial planners before trump. Give me a break.

    #180271 Reply
    Avatar Panscan 
    Participant
    Status: Resident
    Posts: 789
    Joined: 03/18/2017

    Just like all doctors sign a hippocratic oath but try getting GI to come in at night and scope someone

    #180272 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2306
    Joined: 09/18/2018
    I like to think that those who are a going to be a true fiduciary don’t need a law or regulation to tell them that.

    Click to expand…

    Trust but verify.

    One thing I noticed is that I have never noticed a sign or tattoo or color coding that I could tell if someone was telling the truth, the whole truth, and nothing but the truth!

    That would make it so much easier to buy stuff, like a Rolex from the guy selling em on the corner. You know the one with the sign at the stoplight.

    “Will work for food” on one side and “Rolex for sale” on the flip side.

    #180275 Reply
    Avatar treesrock 
    Participant
    Status: Physician
    Posts: 293
    Joined: 08/14/2017

    Just like all doctors sign a hippocratic oath but try getting GI to come in at night and scope someone

    Click to expand…

    Currently covering inpatient and this made me LOL

    #180279 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2155
    Joined: 05/01/2017

    I thought I read a summary court opinion earlier this year maybe after the federal court case where the ruling was something to the effect of: if the car salesman isn’t mandated by law to sell you the best car for your personal situation, but rather can try to sell you the car that makes the salesman the most money, then why shouldn’t the Edward Jones agent be able to do the same thing?

    Wish I could find it.

    Click to expand…

    I saw something similar in a story in the Times, the argument from the anti-fiduciary side was (and i’m nearly quoting) “people should have the right to eat McDonalds as well as go to Whole Foods.” I really really wish I was making that up.

    Ya because there were no sleezeball salesman pretending to be financial planners before trump. Give me a break.

    Click to expand…

    That’s not really the point, the idea was to try to introduce consumer protection regulation just like we do for lettuce. To be fair I have no idea if regulation in this space is wise or even possible. It might just be too hard to track and enforce.

    #180298 Reply
    Avatar Allixi 
    Participant
    Status: Physician
    Posts: 84
    Joined: 03/16/2016

    Just like all doctors sign a hippocratic oath but try getting GI to come in at night and scope someone

    Click to expand…

    Happened last week – the pt literally vomited a gallon of blood as they were talking to me.

    #180345 Reply
    PhysicianOnFIRE PhysicianOnFIRE 
    Moderator
    Status: Physician
    Posts: 1516
    Joined: 01/08/2016

    I’ve been hoping this standard would become the law of the land.

    I really have.

    And then I realized just how weak the standard for being a fiduciary actually is.

    It’s better than the alternative (not having the designation), but it doesn’t mean much.

    My father was invested with a fiduciary and his portfolio was a disaster.

    We fixed it.

    A fiduciary designation, as much as I’d like all Financial Advisors to have it, doesn’t actually mean much.

     

    40-something anesthesiologist and personal finance blogger @ https://physicianonfire.com [Part of the WCI Network] Find me on Twitter: @physicianonfire

    FIRE. Financial Independence. Retire Early.

    #180365 Reply

Reply To: Is the fiduciary rule dead?

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear