As the laws governing how financial professionals guide client retirement assets are set to change, financial advisors are being required to place the interests of their clients first. With this change, all advisors must not only recommend investments that are suitable for their clients, but more importantly, they must act as a fiduciary and place their clients’ interests ahead of their own.
So how will this affect the investments of Pinnacle clients? It won’t.
Since we opened our doors in 1993, we have been registered as Investment Advisors and served as a fiduciary to every client account. Up until now, financial advisors registered as Registered Representatives (RR) of a Broker/Dealer have been able to recommend investments that were merely suitable for a client. The new law will require the RR to become a fiduciary with a greater level of responsibility to all clients (in other words, they’ll be required to be more like us).
The new law only applies to retirement accounts and will often be a factor when clients seek to rollover their 401k plans to other investments to fund their retirement. These are the large and life-changing investments that the law is seeking to protect. Unlike the new ruling, at Pinnacle, we act as a fiduciary for all accounts—not just retirement accounts. In our work with clients, we offer an array of planning and portfolio management services with a focused approach on managing risk, fees, and taxes—all to benefit our clients.