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Another fiduciary rule? This coming Wednesday: “Hump Day” or “Wacky Wednesday”?

The U.S. Department of Labor has an opportunity to make a historic ruling that will benefit everyone saving for retirement. The final version of the highly anticipated “Fiduciary Rule” is to be announced on Wednesday, April 6.

Why is this important? The fiduciary standard that Registered Investment Advisers (like Carnegie) live by will be forced upon any adviser providing investment guidance to retirement plan accounts. In other words, advisers that are currently permitted to recommend only products that earn them the most commissions will finally be forced to come clean. These advisers commonly earn commissions upwards of 5% on load funds and high ongoing fees from these fund companies. It goes without saying that these extra fees directly impact the amounts an investor will earn in a lifetime and could make or break a comfortable retirement.

Will this happen? We will know on Wednesday but there are clearly monumental financial stakes for many Wall Street firms and high-fee mutual fund companies. All of whom have deep pockets and potentially significant influence. Our biggest concern is that the rule ends up as a watered down version of the fiduciary standard, thus adding to the confusion and opaqueness of investment advice.

So, soon we will know if this Wednesday is truly a “Hump Day” towards ethical reform for investors, or simply a “Wacky Wednesday”…