The Fiduciary Rule Is Here

Give advice that is in the “best interest” of the retirement investor. This best interest standard has two chief components: prudence and loyalty;

  • Under the prudence standard, the advice must meet a professional standard of care as specified in the text of the exemption
  • Under the loyalty standard, the advice must be based on the interests of the customer, rather than the competing financial interest of the adviser or firm;
  • Charge no more than reasonable compensation; and
  • Make no misleading statements about investment transactions, compensation and conflicts of interest.

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