The Senate Blocks Stricter Regulations on Retirement Saving Advice from Financial Professionals
On Tuesday, a measure was passed by the Senate which was aimed at stopping a regulation by the Department of Labor which critics worry will work as a barrier for the low and middle income Americans from looking for retirement advice from financial professionals.
The legislation passed will block new rules by the Obama administration which demands the financial professionals to put the best interest of their client first while they give advice about retirement investments. The rules are by the Obama administration are meant to block financial advisers from guiding their clients toward those interests which earn them higher fees and commissions eating away from the clients retirement savings.
Senator Patty Murray of Washington State said "It's pretty simple. It says if you're giving people advice on their retirement accounts, you should put the clients' best interests ahead of your own. We're here today because Republicans want to block that new rule from helping families. That's just wrong."
The new regulations better known as the "fiduciary rule," needs the advisers charging commissions to sign on a promise which says they will act in the best interests of the client and earn "reasonable" compensation and also disclose information regarding the fees and any conflicts of interest.
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