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 It also eliminates the outdated requirement that advice must be ‘regular’ or serve as the ‘primary basis’ for an investor’s decision before the best interest standard applies.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.”