"The new fiduciary rule provides greater protection to investors from high commission fees," said Recchia.

Burr Ridge, IL (PRWEB) May 10, 2016

Peter Recchia, founder of 4Wealth Financial Group and an Accredited Investment Fiduciary, applauds the Department of Labor’s new regulation that provides greater protection to investors who are making decisions about their retirement accounts.

The long-awaited fiduciary rule, officially called the “Definition of the Term ‘Fiduciary’; Conflict of Interest Rule—Retirement Advice” requires all those who provide investment retirement advice to follow a higher, fiduciary standard, that is, to act in the client’s best interest, which must be documented.

“As a fiduciary, you’re required to act in your client’s best interest,” said Recchia, who has been an Accredited Investment Fiduciary (AIF) for more than five years. “In the past, dealer brokers could recommend investment products that benefitted the broker rather than the client, usually in the form of paying the broker a higher commission or fee. In essence, the DOL says that from now on anyone who offers retirement investment advice is a fiduciary and will be held to the higher legal standard of acting in the client’s, not the broker’s, best interest,” said Recchia.

Before this new regulation, many investors were unaware that Registered Investment Advisors and AIFs followed this higher standard all along. The old rule was that the investment product had to be “suitable.” Now investors will no longer have to guess whether the investment advisor’s recommendation for a retirement product benefits the investor or the broker with higher fees.

“The regulation has consequences,” says Recchia. “Fiduciaries are subject to personal liability for losses caused by a fiduciary breach. Fiduciaries are also subject to potentially large excise taxes for engaging in prohibited transactions, unless they qualify for an exemption. ERISA currently prohibits fiduciaries from completing transactions that involve conflicts of interest unless they disclose the conflicts and operate under the oversight of an independent fiduciary.”

Registered Investment Advisors and Accredited Investment Fiduciaries are and have always been investment fiduciaries, and have been faithful to the requirement of putting the client first. “Transparency in investment advice, which is now required, is a benefit to the client,” said Recchia.

4Wealth Financial Group provides tax, accounting, and financial planning for individuals and small businesses. Peter Recchia and the 4Wealth associates take pride creating highly customized business solutions, utilizing the full portfolio of tax, estate-planning, insurance, and investment programs. The 4Wealth integrated tax and accounting approach enhances the professional and personal financial well-being of its clients.

4Wealth Advisors, Inc. only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators nor does it indicate that the advisor has attained a particular level of skill or ability. The firm is not engaged in the practice of law.

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Media Alert: Peter Recchia is available to discuss the new Department of Labor Fiduciary Regulation

Peter Recchia bio:
As an Accredited Investment Fiduciary, Peter Recchia, a Certified Public Accountant, has focused on putting his clients’ needs first when offering investment advice and solutions.

A seasoned AIF, Recchia regards his fiduciary role as critical in providing investment advice and solutions that are in the best interest of his clients. The new fiduciary rule issued by the Department of Labor is an endorsement of the “client first” approach that Recchia takes in advising his clients on retirement matters.
With over 25 years of experience, Recchia has brought his clients expertise rarely found in a single advisor, drawing on his knowledge of accounting, investment and pension-planning to help clients. As a fiduciary, he has created optimal structures for his clients’ businesses including tax-favored pension plans.

As an Accredited Investment Fiduciary (AIF) for pension plans, Recchia has reduced or limited fiduciary liability for owners of pension plans. He takes pride in developing custom solutions for every client, whether it involves tax planning, creating large or small pension programs, or simply offering sage advice that is always in the client’s best interest.

For the original version on PRWeb visit: http://www.prweb.com/releases/2016/05/prweb13399641.htm