“Fiduciary Rule Myths,” a post penned by Los Angeles partners Bruce Ashton and Fred Reish for Drinker Biddle’s Broker-Dealer Law Blog, was reprinted on the Employee Benefit Adviser website with the title “Under the DOL’s Fiduciary Rule, Beware the Myths.” The post discusses the requirements of the Department of Labor (DOL)’s fiduciary rule, and clarifies that the rule does not require advisors to recommend the “best” investment to their customers. Fred and Bruce explain that this misconception is likely due to the Impartial Conduct Standards in the Best Interest Contract Exemption (BICE), and go on to explain how the DOL has defined these standards.

Bruce and Fred remind readers that the idea of recommending the “best” investment is an unattainable standard, and that advisors need only be “prudent, not perfect.” They also recommend steps that an advisor can take in order to make a prudent recommendation for a customer.

Read “Under the DOL’s Fiduciary Rule, Beware the Myths.”

Read Bruce and Fred’s blog post, “Fiduciary Rule Myths.”

Source: Employee Benefit Adviser