{"id":9424,"date":"2021-03-19T14:35:52","date_gmt":"2021-03-19T14:35:52","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9424"},"modified":"2022-02-26T13:05:52","modified_gmt":"2022-02-26T13:05:52","slug":"fiduciary-rules-is-your-advisor-acting-in-your-best-interests","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/fiduciary-rules-is-your-advisor-acting-in-your-best-interests\/","title":{"rendered":"Fiduciary Rules: Is Your Advisor Acting in Your Best Interests?"},"content":{"rendered":"\n

Bill D. from Novato,\nCA asks: <\/em>Good Morning Mitch, I read recently that the so-called \u201cfiduciary\nrule\u201d may not be universally applied in the U.S. Is that accurate? How can an\ninvestor like me know that an advisor is acting in my best interests?<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, Bill, and for asking such an important\nquestion. The fiduciary rule \u2013 which says\nthat all investment advisors including brokers must act in their clients\u2019 best\ninterests when making investment recommendations<\/em> \u2013 has been under review\nand undergoing revisions for the last couple of years. <\/p>\n\n\n\n

The SEC finally concluded the new rule in 2019, called \u201cReg\nBI.\u201d Unfortunately for many investors, the new rule does not legally require\nbrokers to be held to the same standard as investment advisors. In other words,\ninvestment advisors are bound to the fiduciary rule, meaning they must make\nrecommendations in the client\u2019s best interests. Brokers, however, are free to\nrecommend whatever products\/strategies they want (usually ones that generate commissions),\nas long as the strategies\/products align with an investor\u2019s goals, are free\nfrom conflicts of interest, and come with clear disclosures.1<\/sup><\/p>\n\n\n\n

It\u2019s up to you, the investor, to determine if your broker or\nadvisor is bound to the fiduciary rule. <\/p>\n\n\n\n

______________________________________________________________________<\/p>\n\n\n\n

Prepare Your Investments for Any Market Outcome!<\/a><\/strong><\/p>\n\n\n\n

Throughout\nthe last few months, we\u2019ve witnessed the ups and down in the market, which have\ncaused investors to question their next financial move. This is why it\u2019s\nimportant to always be prepared for both the good and bad.<\/p>\n\n\n\n

As\nwe navigate through this year, understand that anything is possible! How much\npotential does 2021 have to be an outstanding year for the market? When will\nthe economic recovery take place? <\/p>\n\n\n\n

In this report, we make\npredictions for the sector under and over performers, while also providing\nthoughts on possible outcomes of 2021. We will look at:<\/p>\n\n\n\n