In a statement to The Hill, Phyllis Borzi, Labor’s assistant secretary for EBSA, said investigations by Labor, the Securities and Exchange Commission, the Government Accountability Officeand others show that conflicts of interest for financial advisers result in lower returns and higher fees for investors.“Conflicts of interest and a lack of accountability are widespread in the marketplace for retirement advisory services. An adviser’s compensation is often directly tied to the specific investment recommendations that he makes, and there is a real danger that the adviser’s recommendations will not be based solely on the customer’s interest, but instead will reflect the adviser’s own financial self-interest,” Borzi said.
“Simply put, we are seeking to protect the millions of employers and small-business owners, workers and IRA holders who rely on investment advice by working to address these conflicts. We think this effort has merit and we are committed to getting it right.”
The fact that both Democrats and Republicans are opposed to the fiduciary rule. Is this because the financial services industry is lobbying both sides of the aisle? Why?
Please comment or call to discuss.
- Phyllis Borzi Wants to Save Your IRA (money.usnews.com)
- Meet the Only Folks Serious About Ending Ripoffs: Susan Antilla (businessweek.com)
- 401(k) Nation: Road To Retirement Gets Rockier (401kplanadvisors.com)