Last spring, flanked by consumer advocates, President Obama announced his support for a rule change that would close a legal loophole and protect the retirement security of millions of Americans. Earlier this week, the Department of Labor released a final rule that is an important step toward ensuring that the brokers and other financial advisers who provide advice to consumers on how to invest their 401(k) and IRA assets must do so in the best interest of their clients – and not in a way that maximizes their own fees and commissions.
The White House and the Labor Department estimate that loopholes in current law cost current and future retirees approximately $17 billion each year.
The new rule is an important victory for millions of current and future retirees, but many of the financial institutions on Wall Street that make a lot of money by selling these “conflicted” investments are already lobbying Congress to oppose this rule change.
Click here to tell your elected officials to support this important rule change and stand with millions of current and future retirees – not financial advisors that provide “conflicted” investment advice.
Last year, the Pension Rights Center collected stories of problems that consumers had experienced with retirement financial advisors who had sold them high-fee investments that were not in their best interests. Karen Friedman, the Center’s executive vice president and policy director, and Norman Stein, the Center’s senior policy advisor, included many of these stories in comments they submitted to the Department of Labor advocating for this rule change.
Together, we made this proposed rule a reality, but we need to ensure this rule holds up.
Wall Street wants Congress to derail this policy. We need our elected officials to know where the American people stand – on the side of millions of current and future retirees, not on the side of financial advisers who dole out conflicted investment advice to consumers.
Please sign our petition today calling on Congress to protect the retirement security of millions of Americans, not the excessive fees and commissions of conflicted financial advisors.
Thank you for all that you do on behalf of current and future retirees.
Communications and Outreach Director