Last month, a federal court stuck down a portion of the Dodd-Frank Act that applied to “retirement” plans. While the law allows the Securities & Exchange Commission to govern, because they have been absent to respond, the government, through it’s Department of Labor and ERISA laws put the fiduciary doctrine in place to protect America’s retirement plans. Now, with the court shutting down the law (the court said DOL does not have jurisdiction), there is currently “no best interest” doctrine in it’s place, when it comes to govern financial brokers.

Yes, I said, brokers! They are different than financial advisors. Brokers work on Wall Street or masquerade as an insurance salesperson or your bank investment representative. These people are salespeople, and many would say, only working to get paid a higher commission!. You do not need to be educated or ethical to be a financial salesperson- just pass a two-hour test, receive a financial license, and have a good gift of gab.

So, what is “best interest” according to logic, standard and legal resource? It’s not that easy because believe it or not, in the financial universe, it is not all the same.

Prior to 1997, “best interest” was defined as meeting a ” suitability” standard. It not not matter if you like the Red Sox, as long as I can convince you to buy the black ones, with the holes. They  might ” fit” or be suitable, but are the socks best for your health!?.This has been the financial industry standard – since the 1930s.

Over the course of the last two decades, many wanted to hold these financial brokers to a higher standard as “best interest” via suitability, many believed did not wholly protect the client! You now had to show why those Black Sox, with the holes, were in client best interest to buy them

Thus, in 2007, after the mortgage crises, the Obama Administration decided to request a change to a “fiduciary standard of best interest.” The SEC, FINRA, the government and self agency regulators had no comment. The U.S. Department of Labor (DOL) totally agreed that “fiduciary” is a stronger legal standard and responsibility-than suitability-for the Clients best interest.

And now with the court, invalidating the DOL policy, we are back to where we were 20 years ago. Back to a “suitability” standard of “best interest.” A standard where most of our financial scandals have taken place. A place where we are back to the traveling ripoff salesperson; this person you can find in your local bank, insurance company with MLM companies, like Primerica, maybe, even your best friend.

Some financial representatives (including our firm) will be holding to the principles that defined us 20 years ago–as we left Wall Street–to assist clients with their financial problems with a fiduciary bent on client best interest. Where clients can enjoy credentialed expert service in a flat fee no commission based environment where our only interest–is helping you.

It is just indeed sad to know that the 20-year revolution of fiduciary standard is now stuck in the mud. The SEC is reviewing the law now. The DOL is asking for a fiduciary universal standard. The financial brokers (through FINRA) are asking for the continuance of the suitability standard.

Should you care? Well, your short- and long-term saving goals, accounts, and even your 401(k) plans matter on this. After all, doesn’t “higher costs” bring “lower returns” and thus make it harder to attain financial goals? Of course it might be “suitable” to have a 401(k) plan, investment account, a life insurance policy, an annuity and even a basic checking & savings account but should they cost so much?

The next time you look for financial assistance, ask if that person is a  “fiduciary representative or advisor.

Then get some financial help! With our new tax and trade laws, our economy is going to shift very dramatically and soon many will see the see saw effect of what is called a “tax cut” this year- might very well be “a tax increase” when you file your taxes next year (unless you prepare). Therefore, seek a fiduciary advisor and create and go over a new Plan- for an upcoming new money world. And not in a way that is ” suitable” but a way that you know you are working, legally, with someone that indeed has your best interest, in a fiduciary way!

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both,  City University of New York & Monroe College, a Private University.  For financial assistance , Anthony can be reached at  (347) 575-5045. Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney