Most retirement advisers do what’s in their clients’ best interests – but not all of them.
Believe it or not, loopholes in the law have made it perfectly legal for some retirement advisers to sell lousy products to unsuspecting clients. Last year, my office put out a report showing the fancy vacations, luxury cars, even Super Bowl-style rings that retirement advisers can receive as kickbacks for selling certain retirement products – even if those products are bad options for their customers.
Patty Murray, Cory Booker and I have been fighting for a strong new Conflict of Interest rule that requires retirement advisers to put their customers first – and today, President Obama and Labor Secretary Tom Perez did just that.
The Obama Administration’s new, higher standard for retirement advice is a huge win for working families. Sign up now to join Patty Murray, Cory Booker and me in thanking President Obama and the Department of Labor for making retirement saving easier, fairer, and more secure for all Americans.
Lousy retirement advice is a much bigger problem than just a few bad apples. Americans lose over $17 billion a year from advisers and brokers who give them conflicted advice.
With literally billions of dollars on the line, the financial industry and its armies of highly-paid lawyers and lobbyists have spent years trying to stop this new Conflict of Interest rule.
And even though today’s announcement just means that the good retirement advisers who already put their clients’ interests first no longer have to compete against the ones that don’t, the lobbyists are going to use every trick in the book to weaken and water down this new rule any way they can.
President Obama and Secretary Perez stood up to the powerful interests to issue this strong new Conflict of Interest rule – and we need to keep standing by their side to protect it and make sure Congress doesn’t overturn the rule. Join Patty Murray, Cory Booker and me in thanking the Obama Administration for leveling the playing field for America’s families and to show our support.
Today’s announcement is the kind of change that people want to see in Washington. Government works when we have people on the frontlines fighting to make it work.