The Year of the Fiduciary – May Update
In past articles, we mentioned that lobbyists will be out in force looking to repeal or
delay a rule within the Dodd-Frank Bill that calls for a uniform fiduciary duty of care for
retail investment advice.
The lobbyists have succeeded in delaying this rule. The SEC recently stated they will
look at this matter later in the year, which most likely means mid-2012.
As a recap, the fiduciary duty of care calls for the following:
1. Act solely in the best interest of plan sponsors, participants and beneficiaries of
2. Avoid conflicts of interest or fairly manage them in the client’s favor.
3. Disclose all forms of compensation both direct and indirect.
As a plan sponsor and fiduciary, you would expect whoever is advising you to disclose
all the details of costs and conflicts of interest. Shouldn’t you demand it?
This makes us wonder why a rule so obvious, forthright and good for all plan sponsors,
participants and beneficiaries would cause such an uproar in the brokerage/banking
Could it be that there are so many conflicts of interest and hands in the proverbial cookie
jar that Wall Street runs the risk of receiving fewer bonuses?
Have you received full disclosure on all fees?
Have you been informed of all conflicts of interest?
Email LCM Capital Management today via firstname.lastname@example.org for your free plan
analysis and we will help uncover what you are not being shown!
Source: LCM Capital Management, our Retirement Plan and Wealth Management