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Retirement advisor rule will go into partial effect, but changes are still possible
Source: Los Angeles Times
Retirement advisor rule will go into partial effect, but changes are still possible
By Jim Puzzanghera
MAY 23, 2017, 11:35 AM | WASHINGTON
A controversial Obama-era rule for retirement advisors, delayed by a review ordered by President Trump because of strong Republican and financial industry opposition, will partially take effect next month, Labor Secretary Alexander Acosta said.
But Acosta indicated that he has problems with the rule and that there still could be changes or a repeal before all of its provisions kick in next year.
The regulation, known as the fiduciary rule, requires investment brokers who handle retirement funds to put their clients’ interests ahead their own compensation, company profits or other factors.
The Obama administration said those conflicts of interest cost consumers $17 billion a year as they are steered toward IRAs and other retirement investments with higher fees or lower returns.
Acosta’s decision “is a win for retirement savers, but it’s the battle that’s been won and not the war,” said Barbara Roper, director of investor protection at the Consumer Federation of America, which supports the rule’s full implementation.
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By Jim Puzzanghera
MAY 23, 2017, 11:35 AM | WASHINGTON
A controversial Obama-era rule for retirement advisors, delayed by a review ordered by President Trump because of strong Republican and financial industry opposition, will partially take effect next month, Labor Secretary Alexander Acosta said.
But Acosta indicated that he has problems with the rule and that there still could be changes or a repeal before all of its provisions kick in next year.
The regulation, known as the fiduciary rule, requires investment brokers who handle retirement funds to put their clients’ interests ahead their own compensation, company profits or other factors.
The Obama administration said those conflicts of interest cost consumers $17 billion a year as they are steered toward IRAs and other retirement investments with higher fees or lower returns.
Acosta’s decision “is a win for retirement savers, but it’s the battle that’s been won and not the war,” said Barbara Roper, director of investor protection at the Consumer Federation of America, which supports the rule’s full implementation.
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Read more: http://www.latimes.com/business/la-fi-retirement-fiduciary-rule-20170523-story.html
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