New rules to strengthen safeguards for consumers who are saving for retirement put in place more rigorous standards for brokers and other financial professionals who provide retirement investment advice.
Under the new rules, released today by U.S. Department of Labor, advisers will be held to higher standards that require them to put their clients’ best interest ahead of their own financial gains, said Consumers Union, the advocacy arm of Consumer Reports.
“This is an important step that could help protect the retirement security of millions of Americans,” Pamela Banks, senior policy counsel for Consumers Union, said. “The old rules were outdated, and these changes are long overdue.”
When consumers are planning for retirement, their adviser should focus first on what makes sense for their finances, not the advisers, Banks said.