The Fiduciary Rule was created to try to keep investors from being taken advantage of. But with President Trump’s SEC appointment, is it now in jeopardy?

by Miaciah Manuel, CFP®

With every appointment and executive action, President Trump continues to garner controversy – and his appointment of Jay Clayton to lead the SEC appears to be no different. Given Clayton’s career as a defense attorney for large financial institutions, the opinion of some in the financial press is that he is unlikely to push for implementation and enforcement of the “Fiduciary Rule.”

Slated to take effect this year, the DOL “Fiduciary Rule” was designed to hold financial advisors to a higher standard of care when dealing with or advising on retirement accounts such as IRA’s and 401(k)’s. The Obama administration pushed for the rule sighting the need for greater consumer protection in the area of financial advice and investment management/sales.

According to the White House Council of Economic Advisers:

“A typical worker who received conflicted advice when rolling over a 401(k) balance to an IRA at age 45 will lose nearly 17 percent from the account by age 65.”

Put aside the politics, the debate over whether you believe the financial industry is overregulated, even if you think this Fiduciary Rule would accomplish what it’s supposed to.

At its essence, this rule was created to try to keep Americans from being taken advantage of by the financial services industry. That’s still undeniably noble.

So what does this appointment mean for regular folks?

If indeed Jay Clayton does not support the SEC’s enforcement of the Fiduciary Rule, it means that the financial services industry will continue to operate as it always has. That’s not necessarily a good thing. Particularly in those cases where a firm is driven by a sales model rather than a fiduciary duty, it’s going to be the responsibility of consumers to watch out for themselves.


We don’t have such a transparency problem at FFP.

Long before there was even talk of regulation, Fiduciary Financial Partners made the commitment to act in the best interests of our clients. There are still some firms that do the right thing because, well, it’s the right thing.

So if the “Fiduciary Rule” doesn’t come to fruition anytime soon, it’s important to know who puts your goals above all else. It’s the difference between wondering if you’re being sold on an investment and having the ability to Confidently Embrace Your Financial Future.

Let us review your financial documents and show you.
Call FFP today at 630.780.1534.


An associate of Nick Economos and John Hillman prior to joining Fiduciary Financial Partners, Miaciah Manuel brings over a decade of financial planning experience to the team. He provides comprehensive financial planning services to FFP private clients, as well as, installation and ongoing support for our retirement plan clients. Miaciah is passionate about collaborating with our clients to solve their problems and ensure their success.

Fiduciary Financial Partners, LLC is a Registered Investment Adviser. This blog is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Fiduciary Financial Partners, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Fiduciary Financial Partners, LLC unless a client service agreement is in place.