New DOL Disclosure Rules

All providers of financial advice and investment products to 401(k) plans and Individual Retirement Accounts (IRAs) will become fiduciaries. It is expected to move many commission-based brokerage accounts to a fee-based model. Fidelity Federal Planning currently operates under the fee for services model.

The new rule will require commission-based brokers and some insurance agents to act as fiduciaries. As a fiduciary, the service provider must act in the client’s best interest. Fidelity Federal Planning already takes on the role as fiduciary and has always acted in our clients’ best interests. We will continue offering our services in this way. Those folks that are not advisers will need to change the way they do business.

Many of the rules are targeted at IRA rollovers from 401(k) Plans. Currently, we charge the same adviser fee that the 401(k) Plan may charge. We believe Fidelity Federal Planning is already in compliance with the new rules. The DOL doesn’t want brokers to place your money in an investment and charge more in the IRA than what you paid in the 401(k) plan. That, is not operating in the client’s best interest.

There will be many changes in the finance industry as companies and brokers are forced to comply with the new DOL rules. Fidelity Federal Planning Corp has ALWAYS serviced their clients in compliance with these rules.