New DOL Rules – Caissa has been doing it all along!
New DOL Rules – Caissa has been doing it all along!
Over the past year, there has been increasing buzz in the financial industry surrounding new regulations from the Department of Labor (DOL). The “Conflict of Interest Rule” proposed by the DOL seeks to apply a “fiduciary standard” to any financial advisor who makes recommendations about clients’ retirement accounts. The ruling is expected to reshape the financial industry and drastically change the commission system that provides compensation for many advisors. While this may be a big change for the brokerage industry, we have ALWAYS practiced with these fiduciary standards.
What the Rule Does
The Conflict of Interest Rule places a fiduciary standard on financial advisors receiving compensation for recommendations on a client’s IRA or 401(k) (as well as some other tax-deferred accounts).
For advisors that earn commission for recommendations for retirement accounts (i.e. not paid directly by clients), the rule requires the use of the “Best Interest Contract Exemption” (BICE). The BICE guarantees an advisor will work in a client’s best interest, disclose any conflicts of interest and provide compensation structures for the financial products they recommend.
Reactions
There will be very little changes at Caissa. Perhaps we will need to add some verbiage in our engagement contracts but we have always performed our role as a fiduciary in the clients’ best interests and we intend to keep it that way. We also do not receive commission for ANY of our investments so that will not be a change for our company either. In the end, we are here to put our clients first.
Caissa Wealth Strategies is a fee based registered investment advisory firm, specializing in personal, dynamic wealth management. Based in Bloomington, Minnesota, Caissa financial planning professionals provide individualized strategies for every client. You can expect more from CAISSA, and in turn, you will get a fiercely loyal advocate on your side. For more news and information on wealth management solutions, visit Caissa Wealth.