10/31/2023

New Biden Target in Junk Fee Crackdown: Retirement Advisers

Financial advisors should put savers' best interests first

On Tuesday, the Biden administration will seek to impose new rules on retirement plan providers to close loopholes that officials argue allow the industry to sell products that boost their revenue at the expense of customers, the latest effort by the administration to crack down on so-called junk fees.

The proposed Labor Department rules require retirement plan providers to only sell commodities and insurance products, such as annuities, to clients when doing so is in the customer's best interest.

They would also hold Wall Street to a higher standard for the advice they provide when people roll over assets from an employer plan to another account, such as employee-sponsored 401(k) to an Individual Retirement Account (IRA).

Please select this link to read the complete article from Reuters.