Regulators Consider Retirement Advice

April 21st, 2015

 Following President Obama’s urging, the Department of Labor recently issued proposed rules to govern retirement advice.  The White House released a study in February, entitled The Effects of Conflicted Investment Advice on Retirement Savings.  The analysis revealed that retirement investors lost approximately one percent in annual earnings, or $17 billion a year, from faulty retirement advice.

Accordingly, the Department of Labor proposed new rules to require retirement advisers to put customer interests first and be subject to fiduciary best interest standards or seek prohibited transaction exemptions.  The rule has already been criticized for having too many carve-outs and loopholes.  However, the Department of Labor joins other domestic and international regulators currently examining retirement investment advice, including the Consumer Financial Protection Bureau (CFPB) and the Financial Conduct Authority (FCA).

Read More: