New Rule Would Crack Down on How Brokers Handle Retirement Savings
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Brokers and insurance agents providing retirement-savings advice would have to put clients’ interests ahead of their own under an Obama administration plan that will face stiff opposition from Wall Street and Republican lawmakers.
The Labor Department proposal announced Tuesday is a win for Democrats and consumer advocates, and a setback for bankers who had angled for a standard to be set by the Securities and Exchange Commission, which oversees a broader range of investment activities. Adoption of a final rule could take six months or longer, according to RBC Capital Markets, providing plenty of time for congressional scrutiny and industry lobbying.