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.


Recent Posts


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