WASHINGTON, D.C. – The Biden administration is expected to announce a new proposed rule this afternoon that would require financial advisors to provide recommendations in the best interest of savers – the third rewrite of the rule in as many administrations. Bartlett Naylor, financial policy advocate for Public Citizen, released the following statement:
“Workers who are trying to save for retirement should be able to count on sound financial advice. The Biden administration’s proposed rule will help ensure that all Americans can have confidence in their investment decisions and retirement savings.
“Most investors rely on advice from a broker, a financial planner, or an adviser to navigate the complex and opaque process of investing. This leaves investors extremely vulnerable to exploitation. Investors lose billions every year in junk fees and sales commissions that do nothing but line the pockets of unscrupulous advisers. Over time, junk fees and commissions combine with second-rate investments to leave aging workers with significantly less money for retirement than they might otherwise have.
“Americans lose when Wall Street gets to play by its own rules, but Wall Street won’t let this easy money go without a fight. Members of Congress must stand firm against any future effort to overturn the proposed rule.”