Department of Labor Changes Financial Advisers’ Standard of Care Rule

The Department of Labor dramatically changed the landscape for financial advisers and investors, announcing final rules that will change most financial advisers standard of care to clients from a “suitability” analysis to a “fiduciary duty”. A fiduciary duty is a very high standard of care. This is already leading to a flurry of industry changes as financial advisers and firms work to readjust their relationships and comply with these new duties. Some are left wondering why the SEC didn’t lead the charge in drafting new rules, and whether the SEC will yet make further rules.

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