Aura Wealth Advisors Respond to New DOL Rules: Aura Wealth Explains How Recent Changes Affect Brokers and Investors

Share Article

Bert Doerhoff, CPA, founder of Aura Wealth Advisors, notes that recent news about changes to Labor Department rules for brokers will have a significant impact on the brokerage industry, but his approach as a registered investment advisor remains the same. As a registered investment advisor, Doerhoff explains he and his fellow advisors have a fiduciary responsibility to their clients.

Everyone needs to take note of the fiduciary standard. Ignoring it has a negative long-term effect on the retirement savings of both individuals and businesses.

Bert Doerhoff, CPA, founder of Aura Wealth Advisors, notes that recent news about changes to Labor Department rules for brokers will have a significant impact on the brokerage industry, but his approach as a registered investment advisor remains the same. While consumers may hear terms like “conflicted” versus “nonconflicted” advice often in the coming months, the overall approach toward client service may remain the same for other investment advisors as well.

As a registered investment advisor, Doerhoff explains he and his fellow advisors have a fiduciary responsibility to their clients. This means that they must always act in the best interest of their clients, no matter how it impacts their earnings.

By contrast, brokers operate under suitability rules, which means that they are required to recommend investments that fit the investment policy, for example, but are not held to the same fiduciary responsibility that a registered advisor must follow.

The differences between brokers and registered investment advisors are significant, says Doerhoff. “If two investments fit the needs of the client, but one of them offers better commission to the broker, the broker may recommend the higher-profit investment,” he says. “In contrast, under existing fiduciary rules, a registered investment advisor must offer the lower-cost investment.”

The new rules proposed by the Labor Department would hold all investment advice to the fiduciary standard, potentially causing significant cuts in profits for brokers accustomed to choosing funds that were higher in profit. Industry experts predict that the changes could result in a major consolidation in brokerage firms. The new fiduciary rules will seemingly make it nearly impossible for brokers to offer high commission products or engage in day trading, and the profits will be slimmed down until some brokerage firms are forced out of business.

Doerhoff notes that the changes have no effect on the practices of Aura Wealth Advisors, because the company has always upheld our fiduciary duty to our clients by placing their interests ahead of ours. “Everyone needs to take note of the fiduciary standard. Ignoring it has a negative long-term effect on the retirement savings of both individuals and businesses,” says Doerhoff. “As more information continues to circulate in the coming months, investors should be aware of the terms and the impacts they have on their future.”

About Bert Doerhoff:

Bert Doerhoff, CPA, the founder of Aura Wealth Advisors, is a fee based registered investment advisor who works with families and small business owners to help them protect and grow wealth for life. He designs comprehensive tailored investment solutions with strategic defensive investment approaches that retain growth potential. Guided by fiduciary standards, he works with clients to build a legacy and deliver ever increasing cash flow in retirement that will protect their lifestyle from the effects of inflation.    

This press release is provided for informational purposes only and does not contain investment advice.

Contact Bert Doerhoff, CPA, by email at bdcpa(at)AccuBiz.net; by phone at (573) 634-4006; or learn more at http://www.AuraWealth.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Randi White
Aura Wealth Advisors
+1 (816) 396-8575 Ext: 506
Email >

Bert Doerhoff, CPA
@BertDoerhoffCPA
since: 02/2010
Follow >
Bert Doerhoff CPA, PC (AccuBiz)

Follow us on
Visit website