This is a family friendly site. All content published on this website will be viewed by readers of all ages. Disclaimer: all posts to this webpage are the express opinions of the website owner. They are developed by extensive research on the topic and from both professional and personal experience.
Since you may need to some help understanding investing and retirement planning, we offer this site which provides free investment advice and financial planning ideas for both personal and small business financial help. We provide ideas and resources for retirement planning and offer information for stock market trading in dividend stock investing.
We hold high regard and respect to the investment brokers and financial planners/consultants that we interact with during our research. Many of these men and women are professionals who follow the Fiduciary Responsibilities granted to them as advisors of financial products, often with those products offering them various commissions.
Unfortunately, there are still some in the field who will make their recommendations to customers based on the commission offering. To address this issue and to protect the consumer, in 2015 the United States Department of Labor (DOL), under guidance with the Federal Government, proposed a new list of rules to prevent the obvious conflict of interest involved. You can click this link to the DOL for the fact sheet.
There is a new contract that will be required between the investor and the advisor. It is called a "Best-Interest Contract" or BIC. The "Best-Interest Contract Exemption" is also simply called BICE. This contract that is signed by the investor and advisor will ensure the legal requirement for the advisor to recommend only those financial products or services that are in the best interest of the investor. It also requires the advisor to disclose the potential commission they earn from each financial product or service they are recommending.
The term "Fiduciary Duty" is best described by the Cornell University Law School - Wex:
"A fiduciary duty is a legal duty to act solely in another party's interests. Parties owing this duty are called
fiduciaries. The individuals to whom they owe a duty are called principals. Fiduciaries may not profit from
their relationship with their principals unless they have the principals' express informed consent."