Beacon Financial News

Financial Advisers Face Higher Bar

July 8, 2016 News 0 Comments

Privately-held employers are already held personally liable for not meeting their fiduciary responsibilities regarding their company-sponsored 401(k) retirement plans. On April 1, 2017, this fiduciary responsibility will also be applied to financial advisers of 401(k)s and IRAs with the Department of Labor’s new fiduciary rule.

This new rule will require financial advisers of 401(k) retirement plans and IRAs to meet a higher standard of care (the fiduciary standard). Today, the lower suitability standard is much more prevalent with financial advisers of 401(k) and IRAs — particularly those 401(k) plans with less than 100 employees and $5 million in plan assets.

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