I have mixed emotions writing about the New Fiduciary Rules, reason being is that I know everyone is being riddled with posts, email blasts, white papers, podcasts and webinars on the subject. Not my style to follow the masses, but I feel like maybe I can add something to the discussion. I have sat through the webinars, I have listened to the podcasts and my wore my highlighter pen down to the nub studying white papers. My take on most of these support pieces from the Industry is that they are complicated, full of industry jargon and in many cases still vague. Leaving Advisors lost and still in the dark.
Full caveat here, I am not an ERISA Attorney, however my first name is J.D., so that’s gotta count for something, right? In my expert opinion the biggest takeaway from these new rules has got to be the whole Best Interest thing. If Plan Advisors walk away with a paramount takeaway, it should be that they now must always act in the best interest of the participants and/or plans they support. Is that so shocking? Is that such a big deal? Are you doing something different?
In the new Fiduciary world, Plan Advisors will need to do a little more homework and research on a client’s existing situation and the new offered solution to insure that everything is in the best interest of the client. C’mon, I know we can all handle this and by the way……it’s the right thing to do anyways. From a self-protection standpoint Advisors will also have to document their support and advice in a more detailed and professional manner in this new reality.
Let’s not let these new rules slow down our desire to help plan participants save for the future. Do whats right for your clients, document it and keep doing your thang to make a difference in people’s lives.
Stay tuned for a more in-depth review of the Fiduciary Rules in a soon to be released video from The Retireholiks at http://www.retireholiks.com