The Department of Labor’s (DOL) new Fiduciary Rule shines light on the conflicted – and lucrative – business practices of the financial services industry. The ruling, if enforced, will require everyone who gives advice on retirement accounts – IRA’s, 401k’s, etc. – to act as a fiduciary. In other words, all advisers of retirement accounts will be mandated to act in the best interest of the client. Bare minimum, this includes disclosing all fees and conflicts of interest. Now that shouldn't be too much to ask for, right? Well, not exactly.

In fact, the ruling has caused some of the largest brokerage and insurance companies to become vocally squeamish, (think massive lobbying) as this would peel back their pampered public images only to reveal a dependence on hidden profits and self-dealings. Indeed, if the ruling passes, an entire sub culture would be nearly upended.

So, does this mean no more of the outlandish and distracting marketing? You know, like a perfectly tan, retired couple on the cover of an annuity brochure, fist-pumping a measly 3 foot putt? Well, probably not, as the "Fat Cats" usually get their way.

First, we think the ruling might get thrown out, or simply will not be enforced by the new administration. Second, call us crazy, but we're pretty sure most of these firms will find new ways to generate the revenue that is lost; as their bloated budgets cannot afford to lose out on these revenues. So, alas, these snowbirds can still keep their modeling jobs and celebrating those amazing putts.

Whether the DOL ruling is enforced or thrown out, we think now is a great time to have a frank conversation with your advisor.

Consider asking him or her the following:

Are you a fiduciary? If not, how do I know you’ll do what’s best for me?
How do you get paid?
Even if “It doesn’t cost me anything”, what is your compensation?
Does your firm have special relationships with investment providers or insurance companies? If so, does your firm receive compensation to sell these products?
Do you have sales goals or quotas?
Do you have products that you are required or encouraged to sell?

Of course, it all boils down to trust. Your adviser should have no problem answering these questions. If you see him/her squirming in their chair, maybe it is time to start looking for someone who voluntarily acts as a fiduciary... ahem.

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The Fat-Cats Are Throwing a Hissy Fit