In addition, the filing said, “The panel’s decision also presents an exceptionally important issue because it robs workers, retirees and their families of crucial protections for their retirement investments.”
“AARP is not giving up on our fight to make sure that hard-earned retirement savings have strong protections from conflicts and hidden fees,” said Nancy LeaMond, AARP’s chief advocacy and engagement officer.
While the AARP intends to comment on the Securities and Exchange Commission’s newly proposed best-interest standards for brokers, “the SEC and DOL have different jurisdictions,” said Certner, citing, for instance, the fact that insurance and fixed annuities products sold in retirement accounts are not regulated by the SEC but are covered by the DOL.
Certner said that consumers do not understand that brokers are held to a lower regulatory standard than investment advisors. “We think the DOL rule was long overdue and is needed in and of itself,” he added.
In a 2013 AARP survey of more than 1,400 adults with money in either a 401(k) or 403(b) plan, 93 percent said they favored requiring retirement advice to be in their best interest. At the same time, fewer than four in 10 indicated that they would trust advice from an advisor who is not required by law to provide that advice in the best interest of the investor.
“Many financial advisors already give advice with the public’s best interests in mind. But the recent court decision allows some financial advisors to provide guidance based on what’s best for their pocketbooks, not the consumers’,” LeaMond said.
“It takes hard work to save adequately for retirement,” LeaMond said. “Consumers deserve financial advisors who work just as hard to protect what they have earned.”
This article was provided by Bloomberg News.