DOL fiduciary rule

[Manonthestreet]

The Labor Department's fiduciary rule is aimed at stopping the $17 billion a year the government claims investors waste in exorbitant fees. The idea is that the regulation will stop advisers from putting their own interests in earning high commissions and fees over clients' interests in obtaining the best investments at the lowest prices.
The final rule contained several important concessions to the advice industry that will make implementation easier for financial advisers. But there still appears to be enough meat to the rule that advisers will have litigation to fear if they can't prove their retirement advice prioritized the client over themselves.
The DOL fiduciary rule will forever change financial advice, and the industry has to adapt

Have a 401 thru my employer that engages a major financial house to administrate. You can hire them or go self directed. Choice of investments in the fund are weighted slightly in favor of the major. I have chosen to make my own decisions with zero of my money being in their funds. Talked to several at work on what they were doing seems most are leaving it up to the major who puts all or most of their money in their funds. Now the best performing choice has been the company stock over the last couple yrs with over a clean double, yet the major has not bought any for the guys entrusting them to make the best choices.
According to the article the biggest effect will be to force mergers......doesn't seem like they really gave a damn about the avg investor who could have filed suit anyway without this if he thought he was purposely given bad advice to collect fees.

 

[Manonthestreet]

The court voted 2-1 March 15 to throw out the Department of Labor’s Fiduciary Rule, ruling the regulation was “an arbitrary and capricious exercise of administrative power.”
“Pending further review, the [Labor Department] will not be enforcing the 2016 fiduciary rule,” a Department of Labor spokesman told CNBC after the ruling. Court Kills Obama Oversight Of Retirees’ Savings Plans
Would like to know how much cash this thing caused to be spent in its short lifespan

 

[Manonthestreet]

Wife went in to add money to her IRA, under Obamas rule she cant. Her account is locked until,as I understand it,it passes a certain $ amount. Only thing she could do is open another one and the only offerings were mutual funds. How does this protect or help an individual. Helps big money managers by giving them a bigger unearned slice of the pie. Also makes it easier for them to manipulate the market...more money in large actively managed funds that can be weaponized at will.

 

[Manonthestreet]

Double the fees. Thank you me Obama....I feel so protected and saved from myself