Despite a possible delay in implementing the remaining provisions of a new federal investor-protection regulation, one thing seems clear to many observers: Requiring financial advisors to act in the best interest of their clients is an approach that's probably here to stay.
The Labor Department is requesting an 18-month postponement in the effective date of certain parts of the so-called fiduciary rule. Yet the provision that requires advisors to provide advice in retirement accounts that aligns with investors' best interests took effect June 9.
"The basic structure of a fiduciary obligation isn't likely to go away," said Duane Thompson, senior policy analyst at Pittsburgh-based consultancy Fi360. "There could be some interest in narrowing the scope of the definition of a fiduciary, but I think the [requirement] will stay in place."