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Department of Labor (DOL) Fiduciary Ruling

Department of Labor* Fiduciary Standard of Care

In March of 2018, the U.S. Court of Appeals for the Fifth Circuit vacated the DOL’s Fiduciary Rule. America’s retirement savers are the ultimate beneficiaries of this Court ruling; this decision preserves investor choice and access to affordable financial advice.

However, there is still some ambiguity and uncertainty about the fate of a fiduciary rule or best interests standard. The Securities and Exchange Commission has indicated they are in the process of establishing a best interest standard for all investors, not just retirement investors. In addition, the CFP Board and certain states are also considering fiduciary standards. The most important thing now, in our opinion, is for the SEC to adopt a best interest policy so that investors are protected, they maintain access to financial advice, and they maintain freedom of choice. Janney has long supported the development of a best interest standard of care.

We remain committed to the delivery of the highest quality advice and service to our clients and to communicating how these regulatory changes may impact client account options at Janney. We work hard to ensure that not only are regulatory obligations met at all times, but that we continue to align any solution to the unique needs and goals of each of our clients.

We’re ready for any change.

With respect to a fiduciary rule or best interest standard that may come to fruition in the future, Janney has years of experience in offering fiduciary relationships to clients; Janney has for quite some time offered a range of account types and service offerings in furtherance of this including access to fiduciary accounts. Because of this long-standing practice, we continue to be able to work closely with clients to ensure they understand regulatory change and its impact, if any, on their accounts or relationship with us.

We will continue to keep our clients’ best interest in the forefront as we also look to stay ahead of any regulatory developments that may impact our clients. While change in our business and in the regulations that govern us may be unavoidable, what never changes is our ongoing commitment and dedication to help clients achieve their long-term retirement and financial goals. We, and our financial advisors, remain committed to our clients, above all else.

*- The U.S. Department of Labor (DOL) is responsible for the administration of pensions and retirement plans. They ensure compliance with the Employee Retirement Income Security Act (ERISA), which sets standards for most retirement and health plans in private industry.