Brocker.Org: Here’s what you need to know about the new investor protection rule

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Starting on June 9, your financial advisor and his or her firm will need to comply with the “impartial conduct standard.”

This requires financial advisors to charge no more than reasonable compensation, avoid misleading statements and, perhaps most importantly, provide advice that’s in the best interest of the investor.

Additional requirements will take effect on Jan. 1, 2018. These provisions include specific written disclosures that financial services firms and advisors must make to clients.

At the heart of the battle over the rule, which was hotly contested by financial services industry, are $7.85 trillion in IRA assets. These accounts are money makers for firms as clients often roll their savings out of 401(k) plans when they retire or change jobs.

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