Can You Trust Your Financial Advisor?
There is a disconnect in the financial industry, and it is yet to be resolved.
The problem is that too many people who work as financial advisors aren't legally required to have their clients' best interests at heart. Unlike lawyers or doctors, who are bound by oath to do no harm or represent their clients' interests faithfully, financial planners and advisors are free to sell any manner of subpar products, and frequently, many of them do.
The fiduciary rule, proposed under the Obama administration seeks to resolve this conflict by ensuring that advisors are legally bound to serve their clients' interests in matters related to retirement accounts. While many advisors already operate this way, the fiduciary rule expands that responsibility to all advisors. Since Donald Trump's election, however, the rule is on shaky ground. A full review is underway, and the future of the Fiduciary Rule hangs in the balance.
Source: Fool.com
