The Fiduciary Standard

On April 4, 2017, the Department of Labor (DOL) released a regulation delaying the applicability date of the Fiduciary Rule until June 9, 2017. This rule introduces a fiduciary standard that applies to financial services firms and advisors across the industry when making recommendations, and providing fee disclosures, for qualified retirement accounts such as IRAs. It’s comprised of three component standards – receiving no more than reasonable compensation, refraining from making materially misleading statements, and providing advice in accordance with the best interest standard of care.

In 2009, Financial Independence voluntarily chose to structure the company as a Registered Investment Advisor (“RIA”) with the U.S. Securities and Exchange Commission under the Investment Advisors Act of 1940. This means we purposefully chose to hold ourselves to a higher standard of care as Fiduciaries well before the Fiduciary Rule was created. The entire premise of my founding Financial Independence was to create a company that succeeded by always putting clients’ interests first.  In fact, that belief is the cornerstone of the principles and values that we live by.

We want to make it clear that the Fiduciary Rule will have very little impact on Financial Independence, as an RIA, and on our clients. Although we are already legally bound as fiduciaries with the current regulatory structure of our firm, to me, the rulings and legalities are secondary. What’s most important is that we have always maintained the best interests of our clients in all that we do and we’ve always acted with the purpose of providing independent, objective and trustworthy advice that can lead clients toward their unique version of financial independence.

Rick Campbell – President