Department of Labor (DOL) Fiduciary Rule Takes Effect

On June 9th, the Fiduciary Rule went into effect requiring financial advisers to act in the “best interest” of their clients in retirement accounts and adhere to the Impartial Conduct Standards set by the DOL. Key provisions include:

  • Fiduciary must act in the best interest of the client
  • Compensation received must be reasonable in relation to the total services provided
  • Statements about matters relevant to the client’s investment decisions must not be misleading
  • Conflicts must be avoided, or managed to serve the client

While phase 1 of the rule is in effect, the future of the rule along with the requirements for the January 1, 2018 implementation date is uncertain.  The final rule was released in April 2016.  The initial implementation date of April 10, 2017 was delayed for the Trump administration’s reassessment, which likely will continue until the January 1, 2018 implementation deadline for the entire rule.  Furthermore, the DOL has stated that they “will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule.”

Gartland & Mellina Group (GMG) has been following the DOL fiduciary rule for the past 2 years engaged with multiple clients to assist in the implementation of the rule for both phase 1 and 2.  GMG was recently quoted in the Wall Street Journal regarding its insights on the DOL Fiduciary Rule; link below:

Gartland & Mellina Group — A Management Consulting Company