AARP Praises New Rule Requiring Financial Advisers to Give Advice in Best Interest of Consumers

Executive Vice President Nancy LeaMond praised the announcement of a final rule by the U.S. Department of Labor (DOL) that updates requirements for providing financial advice to individual retirement plan savers. Americans saving for retirement currently lose an estimated 6 to 17 billion dollars per year due to bad investment advice. Many advisers already abide by the higher standard.

“Today marks a tremendous victory for consumers. The new rules ensure that anyone who is saving for their retirement will know that the advice they receive must be in their best interest.  This is simply common sense, and it is common practice for many financial professionals already. Unfortunately, today many consumers receive investment advice that may not be in their best interest.

“A little over a year ago, President Obama visited AARP to announce this proposed rule and we told him that we know the people we represent have worked hard to save for retirement  and they deserve to have financial advisers who work just as hard to protect what they’ve earned.

“In today’s world, it’s hard enough to save for retirement and achieve your financial goals. The new rules will help make sure that we don’t make it more difficult to save and invest by allowing some advisers to take advantage of hard-working Americans. Bad financial advice is just wrong, and this rule will no longer permit advisers to put their own interests ahead of their clients.”

Not only do retirement investors overwhelmingly support this new standard, AARP also found that 9 out of 10 employers who sponsor retirement savings plans support holding retirement advice to such a best interest standard.

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About AARP:
AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. We advocate for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services.  A trusted source for lifestyle tips, news and educational information, AARP produces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin; www.aarp.org; AARP TV & Radio; AARP Books; and AARP en Español, a Spanish-language website addressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates.  The AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at www.aarp.org .