WASHINGTON, DC – Today, Pennsylvania U.S. Senator John Fetterman led a letter to the Department of Labor (DOL) and Office of Management and Budget (OMB) urging them to finalize the proposed Retirement Security Rule – often referred to as the Fiduciary Rule. If finalized, the proposed rule would ensure that every retirement saver who seeks the assistance of an investment professional will receive advice that puts their best interests first. Senators Brian Schatz (D-HI), Cory Booker (D-NJ), Elizabeth Warren (D-MA), Peter Welch (D-VT), Bernie Sanders (I-VT), Sheldon Whitehouse (D-RI), Ed Markey (D-MA), and Laphonza Butler (D-CA) also joined the letter.
“The proposed rule will help ensure that savers get the most out of their retirement savings, without limiting access to high-quality advice for low- and middle-income savers,” the senators wrote.
They continued: “Retirement savings deserve strong safeguards given how critical they are to ensuring that everyone can enjoy a dignified retirement. Savers who receive conflicted advice unknowingly take risks that may imperil their retirement funds and may cost them dearly in the long run. We urge swift implementation of the proposed rule.”
The proposed rule is supported by a wide range of prominent organizations and unions, including the AARP, AFSCME, CFP Board, AFL-CIO, Consumer Federation of America, Better Markets AFT, SEIU, IBEW, and AFGE. With the letter, Senator Fetterman and his colleagues on the letter made clear he also stands with the vast majority of Americans who believe financial professionals should operate in the best interest of clients. In fact, a new survey commissioned by CFP Board found that nearly 97% of Americans agree that the financial professional who provides one-time recommendations or other one-time advice about retirement investments should be required to act in their client’s best interest.
“This rule is about getting rid of hidden costs and making sure every working American and every retiree gets investment advice that puts them first,” said Senator Fetterman. “I’m glad to see President Biden fighting junk fees and this rule is an important part of that fight. Let’s get it done.”
AFL-CIO President Liz Shuler said: “The AFL-CIO, representing 12.5 million hardworking Americans, stands firmly in support of the Department of Labor’s Fiduciary Rule. This rule is not merely a regulatory measure; it’s a necessary protection for workers, retirees and their families across the nation who lose billions of dollars each year from bad financial advice. By ensuring that financial advisers prioritize their clients’ best interests, we safeguard the dreams and aspirations of every person striving for a secure and dignified retirement.”
“People should be able to count on their financial advisors to provide sound advice that protects and grows their retirement assets, free of conflicts of interest,” said AARP Chief Executive Officer Jo Ann Jenkins on the proposed rule. “A strong rule that closes loopholes in current law will help safeguard their hard-earned retirement funds.”
“Americans overwhelmingly expect and want financial advisors to act in their best interest,” said CFP Board, a nonprofit organization that sets and enforces the requirements for “Certified Financial Planner” certification. “The DOL’s proposed Retirement Security Rule provides meaningful consumer protections, and the time has come to issue the final rule. Moderate-income Americans saving for retirement should receive the same access to best interest financial advice as wealthy Americans. If the rule is adopted, these moderate-income Americans, will gain – rather than lose – access to retirement investment advice that is in their best interests. This will have a significant positive effect on retirement security for the American public.”
The proposed rule is supported by a long list of organizations and unions, including: AARP, AFL-CIO, UnidosUS, Consumer Federation of America, Economic Policy Institute, Americans for Financial Reform Education Fund, Public Citizen, Better Markets, the Certified Financial Planner Board, AFSCME, AFT, AFGE, AEA, AFM, ALPA, APWU, ARA, AFA-CWA, ATU, BCTGM, BRS, CWA, IAFF, IAMAW, ATSE, IBEW, IFPTE, MM & P, IUBAC, IUPA, IUPAT, NEA, NFFE-IAM, NTEU, SEIU, SIU, SMART, TWU, UFCW, UMWA, USW, and UNITE HERE!
Read the full letter HERE.