Rebalance has always put our clients’ interests front and center, with a passionate commitment to providing retirement investment management at the highest levels of professional and ethical standards. In addition, our firm, as a Registered Investment Advisor, is regulated by the SEC and adheres to a strict fiduciary legal standard. We are pleased that the Department of Labor is now proposing a universal fiduciary standard for all retirement investment advisors. We are honored to have been invited to join a coalition, Save Our Retirement (led by AARP) supporting these new rules. In addition, I recently testified before the Office of Management and Budget (OMB) regarding the costs-benefits of these proposed regulations.
A recent New York Times editorial captured the essence of this potentially profound development for our industry and for retirement savers:
“In a giant step forward for investor protection, the Department of Labor proposed new rules this week to ensure that financial advisers act solely in their clients’ best interests when giving advice and selling products for retirement accounts. The new standard of fiduciary duty would bar stockbrokers, insurance agents and other financial professionals from increasing their pay by steering clients into high-cost products and strategies when comparable lower-cost ones are available…The opponents of the new rules are fighting for a status quo in which retirement savers pay an estimated $17 billion a year in excess fees and commissions to advisers who steer them into needlessly high-cost investments because they have no obligation to put the client first.”