Seeking out financial and investment guidance can feel like using the services of any professional for the first time, some are great and others not so much. During your search, you may discover an advisor that truly has your best interests at heart and works well with you. Sadly, some customers were not as fortunate and found themselves hiring advisors that happily strayed from that claimed goal if it meant more profit.
Thankfully the U.S. Securities And Exchange Commission has introduced new regulations to protect consumers from this behavior. If you have been considering investing and hiring a financial planner but worried about finding one that truly works with your investment goals front and center, this recent SEC announcement should put your mind at ease.
What The SEC Regulation Means For You
The aptly named Regulation Best Interest makes it a federal requirement for financial advisors to act in your best interest when any investment strategy or securities transaction is concerned. In short, recommendations are actually aimed at being beneficial to you, as opposed to the previous bare minimum of suitable for your needs. An additional rule now requires an investor relationship summary that is short, simple, and easy to understand for you as a customer. This disclosure summary is aimed at reducing the likelihood of information being overlooked, hidden, or misunderstood. The benefits of this regulation for customers shopping for financial planning advice are great, and more details on the long list of extended protections can be found on the U.S. Securities And Exchange Commission press release.
What You Need To Know
While these new changes are a cause for celebration, they do not reduce the necessity of finding a financial advisor that will work best for you. Not every customer desires to dabble in investing, and you can easily secure your future without any high-risk ventures. The initial search is often the hardest part when it comes to seeking financial planning advice. For those who are making their first attempt at the search, here are a few important notes to keep in mind.
Financial planning and investment can be a difficult task to tackle alone. Beyond your personal situation, the financial market and an ever-changing list of rules, regulations, and taxes will make sure it is anything but simple. The SEC has taken steps to make it safer and easier for customers to obtain quality financial investment guidance. Along with your due diligence, this can help put you on the road to your goals. Are you looking for a financial advisor with a track record of putting the client's interests front and center? Contact our team at BD Financial Concepts today.
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