Depart of Labor: Fiduciary & Conflict of Interest Rule

The Department of Labor issued its much-awaited Fiduciary and Conflict of Interest Rule, which essentially provides a framework for how financial companies must treat retirement accounts. The main thrust of the new law is that financial firms and professionals must act as fiduciaries (and put client interests ahead of their own) towards retirement accounts. MFA is already a fiduciary for ALL accounts, so we do not think the new law will impact us much, if at all.
          However, there are many in our industry that are not fiduciaries and this really adversely affects many of them. Some are already pivoting their business models in positive ways, but others are lobbying Congress to repeal the new law. Republicans have passed repeal measures in the House and Senate, but it is unlikely that they will have enough support to overturn an Obama veto. We’re not partisan here at MFA, but we do think it is a shame for any politician from any party to NOT want finance professionals to act in the best interests of their clients!