3 Bargains as Fiduciary Rule Set to Take Effect
Our financial sector valuations and moat ratings already account for the new standard, and these three firms look undervalued today.
Financial sector firms will have to gear up for implementation of the U.S. Department of Labor’s conflict of interest rule, as it’s been affirmed that major portions of the fiduciary rule will become applicable June 9.
On that day, those providing advice on retirement assets will be considered fiduciaries and will have to comply with the impartial conduct standards of the rule to receive particular forms of compensation, such as commissions. Some of the more operationally intensive aspects of the rule, such as entering into a best-interest contract with clients and certain disclosures, aren’t scheduled to be implemented until Jan. 1, 2018.
Michael Wong does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.