A sign in a corporate IT office once read, “Advice: $10. Good Advice: $1000.”
It’s obvious that when it comes to certain things, you do get what you pay for. In the investment advice industry, however, the amount you pay for insight may not necessarily be based on the quality of the advice, but instead on the compensation plan of your investment advisor.
A new Department of Labor (DOL) regulation known as the “fiduciary rule” is slated to take effect in April, and it seeks to change this scenario.
There’s no argument that President Trump’s election has had a profound positive effect on procyclical and financial sector stocks, the drivers of which are tied to his pro-business policies and infrastructure spending plans. The president’s pro-business policies include reducing financial investment advice regulation. Early in February, Trump signed an executive order delaying the implementation of the DOL fiduciary rule.
Now, many are weighing the pros and cons of such investment regulation...