Last week, the Department of Labor’s “Conflict of Interest” rule went into effect. The rule basically requires that advisors providing advice on qualified retirement accounts and IRAs act as fiduciaries in their clients’ best interest. Before the rule, many advisors were only required to provide advice that was “suitable” to their clients, a much lower standard. Just because an advisor is required to act as a fiduciary doesn’t mean they’ll always provide you with the best advice. Despite the new rule, some firms are still allowing advisors to earn commissions, which can bias them towards recommending investments that pay more commissions than others.

Source: Forbes June 18, 2017 13:52 UTC