RICHMOND, Va. -- It sounds almost obvious, right? A broker needs to put his clients’ interest ahead of his own profit motive?
But unless a broker was a registered investment adviser, he was only held to a “suitability” standard when handling a client’s account. That means he could sell you a product that he may or may not have an interest as long as it was suitable for you.
Now, the Department of Labor says, by next April a broker – registered or not – who handles retirement accounts, must act as a “fiduciary” of his clients’ interests, a higher standard that puts his client’s interest ahead of his own.
Take a listen to Sandy Wiggins of the Actuarial Consulting Group in Midlothian, who stopped by the CBS-6 studio this week as he provides some excellent insight into how the new rules could really help you.
And if you like to learn more, Sandy and a colleague have a blog entry posted here on the topic: