Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, issued the following statement on the Labor Department’s final rule on investment advice for retirement assets that was released today:
“I am pleased that after five years of thoughtful consideration, thousands of letters, and over one hundred meetings the Labor Department has released a final rule to better protect Americans from conflicted retirement advice. I commend Secretary Perez for his exemplary leadership on this issue, and for working with Congress and with industry to craft a strong rule that addresses stakeholder concerns.
“The goals of the rule are simple: brokers and other advisers should always act in the best interests of their clients when providing advice on retirement savings. Unfortunately, the current standards open the door to conflicts of interest because of loopholes that allow some advisers to choose to recommend an investment strategy that yields higher profits for themselves but lower returns for their clients. These conflicts strip $17 billion in wealth from America's savers every year. Enough is enough.
“Today’s announcement is a crucial step to ensuring that Americans’ retirement savings will no longer be threatened by conflicts of interest. The Department’s effort underscores the need for strong consumer protections that level the playing field for all workers and retirees, particularly smaller savers and minorities.”