DGAA bLAWg

Tax Advantaged Retirement Accounts: New Fiduciary Duties Imposed for Financial Advisors and Brokers

Web Admin - Monday, July 18, 2016

Illinois estate planning attorneysIn an era where individuals are increasingly being forced to handle their own retirement savings and financial future, it is important that financial advisors provide sound investment advice, and to not take advantage of hardworking individuals. In order to help protect America’s workers, the Department of Labor has imposed new rules that require advisors and brokers managing retirement accounts to put their clients’ interests first, which is a much stricter approach to retirement saving than in the past. These new rules are collectively referred to as the Conflict of Interest Rule-Investment Advice.  

You would hope that the people you trust when it comes to making investments in your retirement accounts would be honest and would represent your best interests. However, this was not always the case before the imposition of the new rule. Advisors sometime have a conflict of interest when it comes to giving financial advice, especially in situations where the advice is a one-time occurrence, such as when a baby boomer rolls over their ERISA plan investments into an individual retirement account (IRA) or 401(k).  

The new Department of Labor rules are intended to help protect IRA and 401(k) retirement account holders from brokers’ and advisors’ potential conflicts of interest. The new rules impose a fiduciary duty on advisors and brokers that handle retirement accounts so that the client’s interest takes precedence. These new rules can be confusing, if you have questions, you can contact one of the experienced lawyers at our office for help. 

The New Impartial Conduct Standard  

Prior to the new fiduciary rules, advisors and brokers were only required to make recommendations for products that were merely suitable for the client, even when the recommendation was not necessarily the client’s best option. Under the new rules, the definition of fiduciary investment advice was changed by amending 29 CFR 2510.3-21. So now if advisors or brokers make financial recommendations to clients in exchange for a fee for tax-advantaged retirement accounts, then they are obligated to comply with the new impartial conduct standard, which governs their fiduciary duty to their clients.  

There are a number of exceptions to the rule. For instance, a brokerage firm that provides educational information to its clients about a specific product or investment, would not qualify as a recommendation for the purpose of this rule. The new rule became effective as of June 7, 2016, and is applicable as of April 10, 2017.  

If you are interested in learning more about the new rules imposed by the Department of Labor, or would like assistance in understand which investments and advisor are covered by the rules please feel free to contact one of our experienced Illinois estate planning attorneys today. Our law firm serves the communities of Crystal Lake, Palatine, Inverness, Schaumburg, Long Grove, Kenilworth, Riverwoods, Des Plaines, Buffalo Grove, Barrington, and Arlington Heights. Call 847-934-6000 to speak to a member of our team.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Source: 
https://www.law.cornell.edu/cfr/text/29/2510.3-21









Recent Posts


Tags

employees IRELA Palatine criminal defense lawyer estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers drug crimes lawyer Rolling Meadows traffic attorney appealing an insurance claim expungement employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Arlington Heights lawyer dealing with problem employees estate tax startup company Illinois business law atorneys federal regulations for LLCs hiring employees traffic accidents first degree murder estate planning attorney Illinois injury lawyer Super Mario Illinois Trust Code traffic crimes Barrington business law firm Colin H. Gilbert mass shooting Palatine insurance lawyer icy parking lots estate planning trusts employee rights advance healthcare directive Barrington employment attorney traffic violations Buffalo Grove employment lawyer severance agreements Illinois personal injury Illinois insurance claim attorney Illinois jet ski accident lawyer life insurance lawyer Fourth of July Illinois insurance claim dispute lawyers insurance adjusters Illinois insurance lawyer subcontractor Crystal Lake traffic attorney drug crime Illinois insurance dispute lawyers criminal law Palatine traffic accidents pedestrian injuries, pedestrian fatality operating agreements workers compensation Chicago insurance law firm mortgage IRA benefits truck collisions commercial real estate IRS power of attorney Deer Park medical malpractice attorney CAM criminal record Fair Labor Standards Act Palatine business attorney Illinois pedestrian accident attorney ACA Buffalo Grove traffic lawyers construction contracts Schaumburg personal injury lawyers Schaumburg drug defense lawyer bicycle accidents Barrington employment law firm Barrington workers compensation attorney breach of contract life insurance policy Forcible Entry drug crimes Food and Drug Administration's Food Safety Modernization Act Crystal Lake traffic lawyer Thanksgiving rollover car crashes living trust benefits Rolling Meadows corporate lawyer involuntary manslaughter Chicago biking tips Des Plaines collections attorney Crystal Lake law firm Rolling Meadows accident lawyer Palatine drug lawyer Arlington Heights personal injury lawyer Schaumburg insurance lawyers Joliet general practice lawyers boating accidents internet Illinois insurance attorney fiduciary rule delay personal injury law firm Illinois registered agent sexual images Illinois workplace discrimination attorney changes to mortgage law crossover accidents Illinois Probate Act of 1975 creditors Barrington medical malpractice lawyers Buffalo Grove personal injury lawyer Crystal Lake will lawyer Schaumburg real estate lawyer uninsured motorist Long Grove real estate attorney Rolling Meadows boating crash lawyer forming a corporation in Illinois construction accidents Illinois collections attorney Crystal Lake employment law attorney Arlington Heights traffic attorney Illinois defective products attorney insurance dispute attorney Des Plaines drug lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Des Plaines DUI attorney DUI attorney Illinois Workers’ Compensation Commission caretaker rights Des Plaines motorcycle accident attorney Crystal Lake personal injury attorney Crystal Lake medical malpractice law firm Palatine trusts lawyer foreclosed rental property whistleblower protections auto accidents car crashes Rolling Meadows insurance dispute lawyers, insurance dispute insurance claim denials Long Grove estate planning Des Plaines social media after death Illinois driving without license car collision Illinois probate lawyer trucking accident lawyers Illinois employment law attorneys anesthesia errors Arlington Heights TBI attorney estate planning lawyer Riverwoods estate planning lawyer Illinois red light cameras Palatine corporate law attorneys swimming pools Rolling Meadows Attorney Chicago employment lawyer fault based insurance Kenilworth estate planning attorney Arlington Heights Attorney dram shop law Palatine law firm medical malpractice compensation Buffalo Grove probate lawyer Illinois workers compensation attorney Illinois job attorney in terrorem provision Chicago insurance claim attorneys Inverness accident lawyer landlord tenant law employment law, Illinois employment laws disability benefits deadly crashes trustee South Barrington real estate attorney real estate lawyer personal injury accidents Palatine employment law lawyer Illinois wills and trusts attorneys rest breaks blood alcohol content Schaumburg Attorney Crystal lake insurance dispute attorney Inverness elder law lawyer Schaumburg corporate attorney Barrington Traffic Lawyer Schaumburg elder law lawyer trench injuries Illinois corporate lawyer Arlington Heights medical malpractice lawyer real estate leasing Illinois rollover accident lawyers Illinois employment lawyer Illinois estate planning attorney Jay Andrew workplace sexual harassment problem employees car accident lawyers Palatine personal injury lawyer Chicago trucking accident attorney Inverness real estate attorney boating under the influence income distribution deducation Crystal Lake criminal defense attorney Rolling Meadows employment law attorneys healthcare claims Inverness personal injury attorney Illinois insurance claims lawyers low-ball insurance settlement Kenilworth estate planning attorneys caregiver probate claims process Barrington criminal defense lawyer probate fees Rolling Meadows estate planning attorney license reinstatement liability claims Rolling Meadows personal injury attorney Arlington Heights employment attorney trucking accidents civil litigation attorney underage DUI defective products lawyer Des Plaines real estate lawyer new real estate form home inspection lawyer Des Plaines personal injury lawyers Illinois estate planning Retaliatory Discharge drunk driving Chicago estate planning lawyer suspended license Barrington Illinois estate planning lawyer Schaumburg consent to a search Illinois real estate lawyer DUI penalities Chicago lawyer Palatine estate planning lawyer Illinois personal injury lawyers wills Rolling Meadows marijuana attorney Barrington drug crime attorney Illinois employment law firm Arlington Heights wills and trusts attorney Buffalo Grove law firm investment property Rolling Meadows personal injury lawyer unpaid overtime real estate zoning vacation home fines estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, personal injury claim real estate contract Illinois will lawyer fiduciary rule Crystal Lake accident attorney Palatine civil attorney Arlington Heights employment law attorneys Illinois speeding lawyer Crystal Lake civil litigation lawyer holiday statistics Rolling Meadows probate lawyer manufacturing Federal Food Drug and Cosmetic Act traffic violations defense insurance claim denial Rolling Meadows criminal attorney life insurance insurance dispute capital gains tax Rolling Meadows insurance lawyer insurance attorney cell phone senior citizens pregnant women distracted driving accident victims car crash independent contractor Des Plaines real estate attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys pedestrian accidents spinal cord injury commercial leases Illinois criminal defense attorney comp time employment law denial of life insurance preventable medical errors Des Plaines insurance attorney Illinois traffic ticket lawyer car accidents Arlington Heights wills and trusts attorneys Detainer Actions Illinois bicycle safety medical malpractice claims Arlington Heights accident attorney probate process Palatine corporate attorney Rolling Meadows employment law attorney golf accidents Illinois home inspection hands free device Illinois traffic attorney Mount Prospect real estate lawyer pain and suffering Arlington Heights real estate lawyer automated cars Inverness corporate attorney landlord motorcycle accident lawyer Landlord Tenant Ordinance Inverness insurance attorney digital information living trust Des Plaines injury law firm Barrington employment law attorney Rolling Meadows personal injury lawyers cell phone accidents Palatine probate lawyer Des Plaines pet law attorney nursing home negligence Illinois elder law attorney Schaumburg criminal law attorney Schaumburg estate attorney Illinois Sales Representative Act Barrington injury attorney Barrington real estate lawyer Illinois car accident attorney clemency Schaumburg injury lawyer unfunded trust personal injury hit and run accident Do Not Resuscitate Illinois Transfer on Death Instrument Schaumburg probate attorney Arlington Heights injury attorney Barrington personal injury attorney job lawyers Illinois medical malpractice case Chicago employment attorney Rolling Meadows DUI lawyer boating DUI traumatic brain injury college kids DUI defense motorcycle accident Crystal Lake estate planning lawyer Buffalo Grove injury lawyer driving insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Self-Directed IRA Accounts Arlington Heights wills and trusts lawyer Chicago will attorney, social media platforms, Illinois estate planning lawyer, Long Grove estate planning attorney Illinois estate planning law firm Rolling Meadows real estate attorney Kenilworth estate planning lawyer Barrington attorney bicycle dooring accidents employee discrimination Mt Prospect Attorney Schaumburg employment attorney Schaumburg medical malpractice lawyer denied insurance claim digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Deer Park employment law attorney Illinois trusts attorney Barrington criminal lawyer liens Barrington litigation attorney rollover accidents taxes DUI probate claims Illinois DUI attorney Rolling Meadows traffic law firm LLCs traffic offenses FSLA Policy Cancellation personal injury lawyer underinsured motorist filing a medical malpractice claim Arlington Heights pedestrian accidents Crystal Lake employment attorney compensatory time Chicago estate planning Illinois civil litigation lawyer Arlington Heights insurance attorney Illinois employment attorneys homestead rights Deer Park traffic lawyer Deer Park personal injury lawyer PTSD Palatine real estate lawyer trauma after an accident insurance claims pet law Buffalo Grove criminal defense lawyer Illinois employment law fatal car accidents insurance claim dispute attorney criminal defense Des Plaines drug crimes lawyer Palatine injury attorney Arlington Heights wills and trusts lawyers Barrington estate planning lawyer Deer Park real estate law firm trusts work unions traffic deaths Des Plaines claims law firm meal breaks Rolling Meadows modern family estate planning Illinois workers compensation lawyer medication errors estate attorney Illinois mortgages Illinois Smoke Detector Act employee misclassification Exclusions DNR Arlington Heights car accident lawyer insurance denial appeals Illinois motorcycle accident lawyer Palatine workers compensation lawyer Palatine Attorney Deer Park criminal attorney pizza emoji wrongful death medical research Mount Prospect wills and trusts lawyers distracted driving accidents insurance agents spinal cord injuries loss of consortium traffic laws slip and fall accidents wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace estate plan Mount Prospect elder law attorney underfunded trust Crystal Lake business law attorneys Home Sale Contingencies Palatine employment attorney Home Remodeling Repair Act dog bites Rolling Meadows insurance attorney natural gas Chicago corporate attorney institutional trustee life insurance claims Palatine construction attorney Legal Info IRA trust transfer Rolling Meadows drug defense attorney Inverness civil lawyer Inverness probate lawyer cell phone tower data elder law owner responsibility employment lawyer Buffalo Grove medical malpractice lawyers BAC denied insurance claims insurance claim delay Crystal Lake bike accident lawyer back injuries medical malpractice irrevocable trust Rolling Meadows insurance dispute lawyers Illinois construction accident attorney Crystal Lake personal injury lawyer paid sick leave Buffalo Grove traffic attorney Class A misdemeanor child safety license suspension civil litigation construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Illinois medical malpractice lawyers dynasty trusts Deer Park accident attorney jet ski Crystal Lake insurance lawyer insurance agent negligence Inverness real estate lawyer GM ignition switches Inverness DUI lawyer digital assets natural gas explosion brain injury Illinois real estate BUI Arlington Heights trucking lawyer Schaumburg personal injury attorney ObamaCare Attorney Ken Apicella power of attorney for healthcare privacy workers compensation benefits Illinois insurance disputes jet ski accidents agent employment attorney privacy laws bad faith insurance claims food poisoning Schaumburg employment law attorneys civil rights violation Arlington Heights Traffic Lawyer loopholes preventing accidents real estate closing field sobriety test medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers Crystal Lake medical malpractice attorneys TBI Crystal Lake medical malpractice lawyer insurance negligence car accident Illinois living will workers comp FMLA insurance claim dispute Illinois employment law attorney Illinois insurance claim dispute lawyer pedestrian accident financial advisors Illinois real estate attorney product liability probate wills and trusts Crystal Lake pedestrian accident lawyer Arlington Heights car crash attorneys Illinois wrongful termination lawyer eluding a police officer Illinois medical malpractice attorney ken apicella Rolling Meadows business lawyer Chicago car accident lawyer license surgical mistakes Barrington estate planning attorney special needs trust School Visitation Rights Act liability Palatine traffic lawyer living trust vs will Des Plaines medical malpractice attorney estate planning for college students marijuana Illinois traffic laws controlled substance products liability commercial leasing Deer Park DUI lawyer Crystal Lake employment lawyer comparative negligence healthcare Inverness traffic law firm Des Plaines personal injury lawyer Rolling Meadows criminal lawyer Illinois small business probate lawyer wrongful termination Palatine employment lawyer drug possession drugs Crystal Lake injury attorney employment contract Illinois LLC creation overtime violations Barrington personal injury lawyer employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Buffalo Grove real estate attorney Arlington Heights criminal lawyer vacation home Whistleblower Claims car crash injuries unauthorized overtime insurance disputes Transfer on Death Instrument Palatine elder law attorney pedestrian-automobile accident minimum wage Illinois traffic attorneys wage theft Illinois wills and trusts Illinois personal injury lawyer blended families revenge porn Illinois medical malpractice claim Crystal Lake tax lawyer traffic tickets coronavirus guardianship attorney personal injury claims Schaumburg criminal attorney living wills POA Rolling Meadows car accident lawyers Deer Park motorcycle accident lawyer Inverness injury lawyer Rolling Meadows litigation lawyer rumble strips Rolling Meadows Traffic Lawyer right to work Liquor Control Act trust payments Schaumburg wrongful death attorney Arlington Heights tax lawyer criminal bike accident Deer Park traffic accident attorney Chicago traffic lawyer Arlington Heights personal injury attorney business litigation unpaid assessment Family Medical Leave Act Des Plaines accident attorney Des Plaines criminal attorney defective products Illinois boating accident lawyer health insurance dispute sole proprietorship murder DGAA elder abuse Des Plaines civil attorney Barrington boating accident attorney Illinois law DMV Deer Park workers compensation lawyer Schaumburg traffic lawyer foreclosure speeding Illinois tax attorney license revocation medical marijuana digital evidence small business Illinois traffic accident lawyer digital media accounts, estate planning, Arlington Heights estate planning attorney, tax attorney rent to own real estate contracts Schaumburg estate planning lawyer Des Plaines personal injury attorney Des Plaines tax law firm condo association head on collisions Crystal Lake car accident attorney Arlington Heights estate planning attorney Long Grove wills and trusts attorneys Schaumburg car accident attorney Buffalo Grove corporate attorney pet bites installment contracts corporate law Palatine civil litigation lawyer texting while driving deed transfer Illinois trucking safety Buffalo Grove personal injury attorney attorney fees car accident lawyer premises liability Illinois workplace lawyer Buffalo Grove car accident lawyer llinois Real Estate Lawyers Association slip and fall texting and driving Illinois employee rights attorney. Buffalo Grove insurance claim dispute lawyers reckless homicide insurance denials contracts insurance claim Chicago attorney real estate attorneys Affordable Care Act condo Illinois employment laws marijuana crimes attorney Palatine punch death gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys federal crimes Illinois Wage Payment and Collection Act real estate Illinois business lawyer Rolling Meadows employment attorney no contest clauses BAIID Barrington civil litigation attorney breathalyzer test South Barrington real estate lawyer Colin Gilbert Rolling Meadows tax attorney Schaumburg civil litigation attorney traumatic brain injuries Schaumburg construction accident lawyer sexual harassment overtime pay personal injury attorney murder charges Long Grove real estate lawyer Long Grove estate planning attorneys Illinois pet lawyer Schaumburg estate planning attorney Schaumburg personal injury lawyer Illinois attorney Rolling Meadows medical malpractice lawyers estate planning accidental death benefits Illinois Human Rights Act Crystal Lake pet attorney gift taxes Chicago will attorney Employment Discrimination Law murder defense Inverness estate planning lawyer residential real estate Illinois personal injury attorney Crystal Lake car accident lawyer Illinois lawyer drunk driving statistics Des Plaines Traffic Lawyer pay when paid contract

Archive