We ‘re starting an ad campaign about how we like the Department of Labor’s ruling that financial advisors need to put their clients’ interest above their own. OF COURSE the ruling is because of several bad apples and their negative impact on investors’ returns due to high-fee products!
The thing is, despite the fact that I work with a broker dealer, who is paid a Gross Dealer Concession from the fund companies where I place investments (and I get a piece of that); it’s always been in my best interest to put the clients’ interest first. I also stress that I’m helping them choose the investment from a company where I’ve placed my own important money – as well as that of my brothers, sisters, children and most difficult and valuable client, my wife, Candace!
Yes, things will change when this ruling gets fully implemented. It will be important to stress the value that a Certified Financial Planner brings to the relationship, and that his or her advice is worth the now-must-be-disclosed fee structure the DOL Ruling requires. But I’ve always explained how I’m paid, and why the current broker dealer concession system allows me to work with the wide variety of clients I have. It will be interesting to see clients’ reactions if they need to write a fee-for-service check every quarter, to secure my services and transaction costs.
Whether my current broker/dealer survives in its present form, morphs into some new compliant model mode,or we migrate to another platform; I know we’ll provide the same quality comprehensive financial planning that we’ve found to be so helpful to our friends and clients so far.