The rules governing how financial services professionals handle trillions of dollars they invest on behalf of individuals saving for retirement are about to get significantly tougher.
The U.S. Department of Labor (DOL), just released its highly anticipated "fiduciary rule" today. The rule will require financial professionals who provide investment advice to plans, plan sponsors, fiduciaries, plan participants, beneficiaries, IRAs, and IRA owners to do so without regard to their own interests or the interest of anyone else other than the customer. This includes a requirement that brokers and firms charge only reasonable compensation, make no misrepresentations to their clients regarding recommended investments and assume fiduciary responsibility for which they will be legally accountable upon provision of conflicted or biased advice that is not in the investor's best interest.
The rule also updates "loopholes" in the law that have allowed certain financial advisers to avoid liability for losses their imprudent advice caused their clients by requiring firms either change their compensation models or enter into a contract with investors affirmatively acknowledging their fiduciary status. While these contracts may still contain forced arbitration provisions and/or a waiver of punitive damages and rescission as a remedy for breach but only as permitted under applicable laws), contracts may not contain any provisions disclaiming or otherwise limiting liability, including any waiver of an investor's right to participate in a class action or any pre-dispute agreement to an amount of liquidated damages or other damages cap. Finally, any agreements to arbitrate cannot include a requirement to arbitrate in distant venue or otherwise unreasonably limit the investors ability to bring claims.
If you have been the victim of securities fraud, no matter if a pending criminal suit is underway, the stock fraud and FINRA attorneys at Colling Gilbert Wright & Carter can help. With decades of combined experience, our attorneys are here to take your case and fight for your rights, helping ensure you are properly compensated for your damages.
To schedule a free case evaluation with our Florida stock fraud attorneys, please contact Colling Gilbert Wright & Carter today. Located in Orlando, our attorneys help victims of fraud throughout the country.