U-S- rules

How the U.S. fiduciary rule changes affect advisors -- and what investors need to know

By now,  investors have likely heard of the expected changes to U.S. rules governing the fiduciary responsibility of financial advisors. In short, these changes are designed to protect investors by reducing conflicts of interest between financial advisors and fund providers. The rules are tailored to help retirement plan participants, including investing in employer-sponsored 401(k) plans.

You also may have heard that the new rules, which are on track to be implemented by April 2017, could change the way some advisors do business. Most of all, the regulations proposed by the U.S. Department of Labor will widen the scope of what is considered fiduciary advice, thereby creating more fiduciaries.

Plexus Financial Services has long been a 3 (21) (a) investment fiduciary – an independent firm bound, committed and solely focused on helping retirement plan sponsors and plan participants make the right decisions. Furthermore, adhering to the fiduciary standard means that Plexus Financial Services shares in the risk with plan sponsors and must act in the best interest of plan participants. Moreover, PFS works on a flat-fee basis, not via commission.

Still, plan sponsors and plan participants may ask: How will the fiduciary rule changes affect us?

One area to watch: IRA rollovers — a common practice for retirement savers changing jobs — could become a little more complicated under the proposed changes. Now, financial advisors who suggest a rollover resulting in a cost increase for a plan participant (such as an increase in commission) may have to get a special exemption to do so. That’s why it is important to talk to a certified financial advisor before making any rollover or plan change to ensure you are indeed meeting your wealth accumulation goals.

Let Plexus Financial Services help.

Plexus Financial Services is committed to helping and educating corporate retirement plan sponsors and participants. Corporate retirement planning is all we do.

For a consultation, or for more on the impact of the fiduciary rules change, contact us at 847-307-6222 or via the web at plexusfs.com.