The DOL "Fiduciary Rule"


The Department of Labor's conflict of interest regulatory ruling, commonly referred to as the Fiduciary rule, has meant anxiety and uncertainty for some in our industry. At Macco Financial Group, we embrace the ruling and the change it will bring. This page is dedicated to answering questions about the rule and establishing a time that works best for you to personally discuss what this ruling will mean.


Click on the questions below for answers

+ What is the Fiduciary Rule and where did it come from?

The fiduciary or conflict of interest rule was brought forth by the DOL in 2015 and finalized in 2016. The rule in large part builds upon the preexisting fiduciary standard enforced through ERISA (Employee Retirement Income Security Act) which focuses on employer retirement plans. The rule furthers the regulatory extent of the DOL to now include retirement accounts, most notably Traditional and Roth IRAs. Learn more about what the rule has to say here: Department of Labor Resources

+ When will the Rule take affect?

The rule will first take effect April 10th 2017, with phase out provisions ending January 1st 2018.

+ What will the effect be on the entire industry?

It is hard to say what the systemic affect will be, but what we do know is that the rule will cover nearly every firm that advises retirement accounts. The rule is intended to encompass retirement accounts and in the process of doing so, regulate financial professionals who advise clients on how to spend the funds in their retirement accounts. What we have seen so far is some firms making the transition from commission based business, to fee based advising. Our hope is that this rule will help eliminate some of the worst products, processes, and people in our industry.

+ How will this change what Macco Financial Group does?

While some firms may have to make major changes to how they advise their clients, we for the most part won't be. The rule does spell out some new standards for goal documentation and transparency that we will continue to build upon moving forward. Macco Financial was founded on the basis of fee based relationships and transparency, it is a large part why we embrace the DOL Ruling.

+ In what ways will clients be effected by the rule?

If our advisory relationship with you is already fee based and we have regularly discussed your goals, this rule will look very similar to the way we already provide services to you. Behind the scenes, we have additional documentation requirements. Clients that have commission based accounts may see new investment recommendations.

+ As a client is there anything I need to do?

As advisors we simply ask that you are patient with us as we continue to learn and interpret what this rule will mean for our clients. From an investment and regulatory standpoint there is not much our clients will have to do since a majority of the rule is inward facing. We will be reaching out to our clients in the next two months to discuss your specific situation. We are thankful for your continued trust in our advisors and our firm.



In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm's Form ADV Part II as well as the client agreement. Investors should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. The prospectus contains this and other information and should be read carefully before investing. The prospectus is available from your investment professional. Any opinions are those of Michael Macco and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Please consult with your financial professional about your individual situation. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected.