The recent Department of Labor (DOL) proposed rule changes for financial advisors who provide investment advice to qualified pensions plan are intended to bolster the standards of care for investors. The new rules are intended to expand the definition of a fiduciary under the 1974 Employee Retirement Income Security Act (ERISA). The new fiduciary standard will impose two new requirements for financial advisors:
- Financial advisors must act in the best interests of pension plan participants; and
- Financial advisors cannot provide financial advice if it affects the fiduciary’s compensation.
The new requirement related to compensation has many financial advisors who provide commission-based compensation concerned about the effect on small investors. They argue that investors with smaller balances in their retirement accounts will become underserved. True North Financial Advisors provides investment advisory services to qualified pension plan participants that comply with the proposed DOL proposed rule changes.
True North Financial Advisors provide investment advisory services for qualified retirement plan participants, including FRS Investment Plan participants, as a fiduciary on a fee-basis. The investment advisory services include third-party money managers that accept full fiduciary responsibility for the development of investment strategies based on client investment objectives, investment time horizon and risk tolerances, which are implemented and monitored through the use of personalized:
• Investment Policy Statement; and
• Asset Allocation Models.
True North Financial Advisors is dedicated to a truly unique relationship of trust and confidence with those individuals we help. We trust your access to our professional experience and knowledge of the financial services industry will provide the direction you need to find your True North.
