Our Perspective: Putting Clients First

The investment advisor fiduciary rule is back in the news. We have written about the rule before, but thought it would be helpful to revisit the topic since President Trump has issued an executive order that his Labor Secretary should review, and possibly overturn, the proposed regulations set to take effect in April.

Background

Last year, the Department of Labor (DOL) announced new rules designed to protect investors who are saving for retirement by requiring brokers (Sage is not a broker), to help clients invest according to their clients’ utmost best interests, not merely in ways that are “suitable” to their interests. The regulations generated quite a few headlines as the large brokerage firms like Wells Fargo, Morgan Stanley, JP Morgan Chase, and Bank of America Merrill Lynch scrambled to find ways to operate according to principles that Sage has been following for more than 25 years. As an independent registered investment advisor (RIA), Sage will always, put our clients’ interests first.

Our Perspective

It is unclear whether Trump’s new Labor Secretary will prevent the fiduciary standard from taking effect in April or not. But regardless, Sage will always act as a fiduciary on our clients’ behalf. The investments and services that we recommend will continue to be those that we deem best for each individual investor based on that client’s specific goals and risk tolerance.
Any change in how brokers are regulated will not change the relationship our clients have with Sage in any way. Sage operates as an independent registered investment adviser, and as such we are bound by our fiduciary duty.
We consider independence to be one of our greatest strengths. Our clients know that Sage prioritizes their best interests, that we approach each client as a unique relationship, and that our investment advice is personal and objective.
Unlike brokerages, which may be biased to recommend and sell investments and other products (i.e. insurance, mortgages) that generate more revenue for the firm, we do not receive commissions to buy and sell securities on your behalf, nor do we receive any compensation from any third party if we invest in their products. This enables us to recommend the investments that best fit each client’s financial profile, not just those that are merely suitable.
We are hopeful that regulations will remain in place so that all investors will have better access to advice that serves their best interests. To us, putting clients first is simply common sense.

If at any time you would like to talk to us about our perspective on pending regulation changes or anything else, please reach out to us directly at 484-342-4400.

The information contained in this report has been obtained from sources we believe to be reliable but cannot be guaranteed. Any projections, market outlooks or estimates in this letter are forward-looking statements and are based upon certain assumptions. Other events which were not taken into account may occur and may significantly impact our opinion. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any discussion or information contained in this communication serves as the receipt of, or as a substitute for, personalized investment advice from Sage Financial Group. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Sage Financial Group is neither a law firm nor a certified public accounting firm and no portion of this communication should be construed as legal or accounting advice. A copy of the Sage Financial Group’s current written disclosure statement discussing our advisory services and fees is available for review upon request.