A new rule could make it harder to figure out if your financial advisor is on your side
Carlina TeterisThis summer, it may become more difficult for investors to determine whether a financial advisor indeed has their best interests at heart.Starting June 30, financial advisors who are affiliated with broker-dealers legally will be required to place clients' interests first when they give financial advice.This rule, which was handed down by the Securities and Exchange Commission and is known as Regulation Best Interest, requires firms to disclose and mitigate conflicts of interest.Here's the complexity for clients: Not all financial advisors are subject to it.Even after it takes effect, different standards will apply to these professionals based on whether they collect commissions and which regulatory bodies oversee them – the SEC, the Financial Industry Regulatory ...