New Rule Requires Retirement Advisers To Disclose Kickbacks
7:09 PM, Apr 6, 2016
4:29 PM, Feb 14, 2017
Photo Credit: U.S. Department of Labor
Lawyers are required to give advice that is in their client's best interest. The same is true for doctors and their patients. And now that rule also applies to financial advisers.
The U.S. Department of Labor announced the new "fiduciary rule" that requires financial advisers to disclose any conflicts of interest related to their investment advice.
Before the updated rule, advisers were allowed to recommend investments that earned them kickbacks without disclosing that information. That conflicted advice meant families lost an estimated $17 billion each year in their retirement savings.