Republicans aim to block stricter rule on retirement savings
WASHINGTON (AP) — Republicans controlling the Senate are moving to block new Obama administration rules that require financial professionals to put their client's best interest first when giving advice on retirement investments like individual retirement accounts.
The regulations are aimed at blocking financial advisers from steering clients toward investments with higher commissions and fees that can eat away at retirement savings.
The rule requires advisers who charge commissions to sign a promise that they will act in the client's best interests, earn "reasonable" compensation, and disclose information about fees and conflicts of interest.
The White House says President Barack Obama will veto the measure, which is advancing through the Senate under a special process that does not allow Democrats to filibuster it.
Some brokers rip off investors by pushing them toward higher-cost investments like variable annuities or riskier options such as real estate investment trusts.