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Labor Department offers FAQ on fiduciary rule

Joe Mont | January 17, 2017

The Department of Labor has released a second series of “frequently asked questions” pertaining to its recently adopted Conflict of Interest Rule. After April 10, advisers who are paid to make recommendations about retirement accounts, such as individual retirement accounts (IRAs) and 401(k) accounts, will be treated as fiduciaries. This includes advisers who are paid both directly and indirectly through commissions or other payments received from third parties.

The new rules generally require that advisers:

  • Satisfy a professional standard of care when making investment recommendations;
  • put their customer’s interest first when making recommendations;
  • avoid misleading statements about conflicts of interest, fees, and investments;
  • follow policies and...
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