WASHINGTON – The Pension Rights Center applauds the U.S. Department of Labor for finalizing an important regulation to help ensure that financial advisers and brokers who give advice on investments in 401(k) plans and IRAs do so in the best interests of their clients. The Labor Department estimates that American families lose as much as $17 billion each year due to advice received from advisers with financial conflicts who place their own financial interests ahead of their clients.
“By finalizing this long-overdue rule, DOL has taken a giant step forward toward protecting workers and retirees trying to save for their retirement,” said Karen Friedman, the Center’s executive vice president and policy director. “For too many years, a loophole in the law allowed many ‘trusted’ brokers and financial advisers to recommend investment products that enriched themselves at the expense of their clients,” says Friedman. “Now consumers will know that when a financial adviser gives advice on what they should do with their hard-earned money, that advice will be in their best interest.”
This rule is the result of more than five years of U.S. Department of Labor research, investigation and consultation with stakeholders. But the fight for conflict-free investment advice is not over. The Pension Rights Center calls on members of Congress to resist efforts by some in the financial industry to weaken this common-sense rule. We will continue working with our allies to ensure that this rule stands and that consumer interests are protected.
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