Valtrend - Butler Business Valuation

Fiduciary or just plain suitable?

The investment management industry is bracing for a new rule, which will change (for many) how they approach their clients’ investments.テつ Is the investment merely suitable (which may potentially result in high commissions) or does the investment act in the best interest of the client?テつ Big difference.テつ Fiduciary is a much more burdensome approach and, not surprisingly,テつ many in the field are none to happy.

Why?テつ Much more work; much more responsibility, higher threat of lawsuits – if things do not go well.テつ Thus, while advisors will no longer be able to sell high commissioned suitable products anymoreテつif if they are not in the best interest of the client – they may charge more to render their advice.テつ It will be interesting to see how this shakes out in the industry and for their clients.

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