The Future is Fee-based
The financial advisory industry has been evolving, and the announcement of the Department of Labor (DOL) fiduciary rule shows that regulators acknowledge this important trend—supporting the shift from commission-based sales to fee-based and fee-only advice. We have always believed that the future is fee-based, and the intent of this rule is to recognize that consumers and advisors are moving in this direction.
Consumers today need guided advice—and they deserve advice that is in their best interest. Simply put, this ruling puts power back into the hands of consumers and validates a mission that Jefferson National has been working towards for years.
As important financial reforms have reshaped the industry over the past decade, and more advisors move to independence, Jefferson National was built from the ground up to meet their unique needs. We always have—and always will—support those who sit on the same side of the table as their clients.
This ruling is a first step. While the DOL Ruling only directly impacts qualified retirement investment vehicles, we believe there will be an eventual impact across the industry. It is almost impossible to run parallel standards for retirement savings and taxable assets. There’s likely to be increasing pressure on the SEC and others to consider exactly what the fiduciary standard means and to harmonize those standards on the taxable and the tax-deferred side.
– Mitch Caplan, CEO, Jefferson National