The founder and CEO of ELITE Consulting Partners, Frank LaRosa is a longtime New Jersey executive with experience in strategic business operations spanning the financial services industry. Based in Moorestown, NJ, Frank LaRosa recently wrote a LinkedIn article about the evolving role of those in fiduciary positions.
The backdrop of the piece was a recent court ruling that vacated the Fiduciary Rule. This rule is used by the Department of Labor to define the role of the fiduciary and what comprises “best practices financial advice.”
Previous versions of the rule utilized “point in time financial advice” as a term that limited liability though clearly conveying to clients that advice provided was specific to a certain point in time.
Another formal rule centered on “acting in the best interest of the client” as a core responsibility. The transparency requirement involved a complete disclosure of information such as fees and potential conflicts of interest, and served to provide the client with a reference for the reasons for recommendations and knowledge of associated costs.
As Mr. LaRosa describes it, whatever new Fiduciary Rule emerges is likely to contain these basic elements, as well as address other industry-oversight issues concerning the fundamental nature of fiduciary best practices.
The backdrop of the piece was a recent court ruling that vacated the Fiduciary Rule. This rule is used by the Department of Labor to define the role of the fiduciary and what comprises “best practices financial advice.”
Previous versions of the rule utilized “point in time financial advice” as a term that limited liability though clearly conveying to clients that advice provided was specific to a certain point in time.
Another formal rule centered on “acting in the best interest of the client” as a core responsibility. The transparency requirement involved a complete disclosure of information such as fees and potential conflicts of interest, and served to provide the client with a reference for the reasons for recommendations and knowledge of associated costs.
As Mr. LaRosa describes it, whatever new Fiduciary Rule emerges is likely to contain these basic elements, as well as address other industry-oversight issues concerning the fundamental nature of fiduciary best practices.
