Pension Rights Center Applauds Release of Rule Protecting Investors from Conflicted Investment Advice

Pension Rights Center Applauds Release of Rule Protecting Investors from Conflicted Investment Advice

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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Related:

• At a briefing for Senate staff on the importance of unconflicted investment advice, retiree Janice Winston told a personal story that illustrates the need for a strong fiduciary standard. – See more at: https://pensionrights.org/newsroom/speeches-statements/retiree-janice-winston-speaks-out-support-strong-fiduciary-regulation-0#sthash.YvTNLKvp.dpuf
• PRC letter to the U.S. House of Representatives opposing H.R. 2374 on fiduciary standards (September 30, 2013) – See more at: https://pensionrights.org/newsroom/speeches-statements/prc-letter-us-house-representatives-opposing-hr-2374-fiduciary-standa-0#sthash.qEHMERFP.dpuf

• PRC comments to DOL on its proposed fiduciary rule (July 21, 2015)
• PRC’s fact sheet on investment advisers (April 10, 2015)
• A PRC blog entry about President Obama speaking at an event to mark the release of the proposed fiduciary rule (February 24, 2015)

• PRC press release on the DOL’s about the Department of Labor’s release of a proposed fiduciary rule to the Office of Management and Budget (February 23, 2015)
• A PRC blog entry about President Obama speaking at an event to mark the release of the proposed fiduciary rule (February 24, 2015)
• A group letter to Congress in support of a strengthened and updated fiduciary rule (September 17, 2014)
• PRC letter to the U.S. House of Representatives opposing H.R. 2374 on fiduciary standards (September 30, 2013)
• Retiree Janice Winston speaks out in support of strong fiduciary regulations (September 13, 2013)
• Norman Stein calls for an end to conflicts of interest in investment advice (September 13, 2013)
• A PRC blog entry, explaining why H.R. 2374 should be defeated (July 16, 2013)
• PRC letter to the U.S. House of Representatives opposing H.R. 2374 on fiduciary standards (July 8, 2013)
• A group letter in opposition to H.R. 2374 that was sent to the House in June 2013 (June 18, 2013)
• Pension Rights Center testimony in support of proposed fiduciary rules (July 26, 2011)
• Pension Rights Center testifies in support of proposed fiduciary rules (July 26, 2011) – See more at: https://pensionrights.org/newsroom/speeches-statements/pension-rights-center-testifies-support-proposed-fiduciary-rules-july-2#sthash.lUiovWLF.dpuf
• Letter and memo that the Pension Rights Center sent to Congress, expressing support for the proposed regulations (July 20, 2011)
• The Pension Rights Center’s supplemental comments on the proposed regulations (April 12, 2011)
• Norman Stein’s testimony at a Department of Labor hearing on the proposed regulations (March 1, 2011)
• A PRC blog entry on the importance of the proposed regulations (February 15, 2011)
• Comments on the proposed regulations to the Department of Labor, submitted jointly by the Pension Rights Center and the National Employment Lawyers Association (February 3, 2011)