Save Our Retirement Coalition’s Initial Statement on Rule Protecting Americans’ Retirement Savings

Save Our Retirement Coalition’s Initial Statement on Rule Protecting Americans’ Retirement Savings

Washington, D.C. – The seven members of the SaveOurRetirement.org coalition – AARP, AFL-CIO, AFSCME, Americans for Financial Reform, Better Markets, the Consumer Federation of America and the Pension Rights Center – released the following statement following an initial review of the Department of Labor’s (DOL) proposed rule protecting Americans from harmful conflicts of interest, when brokers and other financial advisers give retirement investment advice: 

“After years of thoughtful analysis and consultation, the DOL has drafted a strong rule that will help bring millions of Americans much closer to a secure, dignified retirement. This rule would close major loopholes to help ensure that workers and retirees receive retirement investment advice that is in their best interest. Among other important protections, the proposed rule covers advice about rollovers — perhaps the most important financial decision that many people will ever make. It also eliminates the outdated requirement that advice must be ‘regular’ or serve as the ‘primary basis’ for an investor’s decision before the best interest standard applies. 

“Although some Wall Street interests are attacking the rule already, those attacks ignore numerous provisions specifically designed to accommodate their concerns. For example, the rule clearly exempts bona fide educational activity for the benefit of investors, and it also allows advisers to continue charging commissions, provided of course that all advice given is in the client’s best interest.  

“This rule promises to be a major improvement over the status quo, which allows too many financial professionals to offer self-serving investment advice at the expense of their clients’ retirement security. As the comment process moves forward, we will continue to evaluate all aspects of the rule, including the exemptions and carve-outs proposed by DOL in response to industry complaints, to help make it as strong as possible. And we encourage all Americans to share their views with the DOL so they can finally get the unbiased retirement investment advice they deserve.”

Related:

• 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)
• A PRC press release about the Department of Labor’s release of a proposed fiduciary rule to the Office of Management and Budget (February 23, 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 the 2010 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 2010 proposed regulations (July 20, 2011)
• The Pension Rights Center’s supplemental comments on the 2010 proposed regulations (April 12, 2011)
• Norman Stein’s testimony at a Department of Labor hearing on the 2010 proposed regulations (March 1, 2011)
• A PRC blog entry on the importance of the 2010 proposed regulations (February 15, 2011)
• Comments on the 2010 proposed regulations to the Department of Labor, submitted jointly by the Pension Rights Center and the National Employment Lawyers Association (February 3, 2011)