What is a Fiduciary?

Recently, Paul Mershon, Founder and CEO of Silverhawk Wealth Management, was featured on the national news program Retirement News Online discussing what it means to be a fiduciary. Watch the video here:

As the recent DOL “fiduciary rule” begins to take effect, with full implementation required by April 2017, all financial advisers are expected to recommend only what is in the best interests of their clients when they offer guidance on 401(k) plan assets, individual retirement accounts or other qualified monies saved for retirement.

The DOL fiduciary rule has caused a change in how advice is provided to clients because in the past, Independent Broker-Dealers have previously operated under a less stringent standard which only required their advice to be “suitable”. Registered Investment Advisors (RIAs) like Silverhawk Private Wealth are already held to a fiduciary standard, as per The Investment Advisors Act passed in 1940, under which all RIAs are registered to conduct business.

Although the fiduciary rule does not apply to after-tax investment accounts at this time, it could be expanded to include them under an expected SEC rule that may be announced in the next year.