The Intersection of Three Fiduciary Standards of Care
Jason Roberts is understandably getting inundated with questions.
In this short interview from the 2018 Fi360 Conference, Jason Roberts discusses the complexities surrounding fiduciary standards in the financial advisory space. He explains that advisors are currently navigating three competing standards of care:
- The 1975 Department of Labor (DOL) standard, which has historically defined investment advice.
- The updated DOL fiduciary rule introduced in 2017, which has significantly reshaped compliance expectations.
- The SEC’s newly proposed standard (as of the interview date), which adds yet another layer of regulatory consideration.
Roberts emphasizes that understanding and integrating all three standards is essential for advisory firms aiming to remain competitive and compliant. He notes that many advisors and firms are inundated with questions and requests for guidance, especially given the uncertainty around which standard will ultimately dominate.
From a legal standpoint, Roberts describes how the Pension Resource Institute supports clients with ongoing compliance documentation, while the Retirement Law Group provides legal analyses tailored to the current laws and regulations.
Addressing the broader question of whether a definitive fiduciary rule will ever be enacted, Roberts expresses skepticism. He suggests that political changes could lead to shifts in direction—if the DOL relinquishes its stance, a future administration may reintroduce its own definition of investment advice.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.
