(07-31-2019, 11:51 AM)mikesez Wrote:

(07-31-2019, 10:33 AM)Predator Wrote: We were talking about the DOT Fiduciary rule not whether an individual advisor can technically call themselves a fiduciary.

The Fiduciary rule required that retirement accounts be fee based only because they had to follow FINRA's best practices for standards of conduct for acting as a fiduciary. This is roughly outlined in that same article:

• Be a fiduciary at all times
  
• Put agreements and disclosures in writing
  
• Show clients what they pay and if the firm receives fees from third parties for their recommendations
  
• Doggedly avoid conflicts of interest – or mitigate them
  
• Be fee-only; avoid commissions
  
• Have baseline knowledge, education and competence
  
• Use an investment policy statement that, at a minimum, expresses assumptions about objectives, risk and performance
  
• Minimize investment expenses
  

The article also states that if you want to make sure you have an advisor who truly acts as a fiduciary, that they also follow these same standards.

Also, there is only one definition of a commission in the financial industry which is outlined in FINRA regulations. Implying that there can be different ways to use the term just further shows your ignorance on the subject.

Fee-based means you accept some commissions, but most of your compensation is fees.
Fee-only means you do not accept commissions at all.

If you were fee-based and disclosed your commissions, you wouldn't have needed to have your clients sign a form.  You could have still called yourself a fiduciary.

So what was the problem then? 
You weren't fee-based? Or did you not want to disclose what you receive from third parties?

Because the DOL fiduciary rule required a client sign a form that would allow commissions to be charged. Why can't you understand that concept?

I can't believe I am arguing financial management with a guy who talks about "impersonal" mutual funds and then his explanation only shows that he doesn't even actually understand what a mutual fund is.

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