AARP Delivers 60,000 Petitions to Department of Labor Calling for Better Investments Standards

The following press release was issued by AARP on Tuesday, June 16.

 

AARP Takes on Bad Financial Advice, Delivering Total of Nearly 60,000 Petitions to Push for Better Retirement Investment Standard

WASHINGTON, DC —Today, in advance of a Congressional hearing this week, AARP delivered to the U.S. Department of Labor what amounts to a total of nearly 60,000 petitions containing signatures from people in every state in support of a higher standard to prevent conflicts of interest, following the release of a proposed rule in April.  The hearing, before the House Education and Workforce Committee, showcases financial firms, but does not provide much of an opportunity to hear from consumers who will benefit from the new rules.

 

“While a number of investment advisers also support a rule requiring advice to be in the best interest of clients, some opponents have recently weighed in with comments that offer timeworn code words for harming consumers,” said Nancy LeaMond, Chief Advocacy and Engagement Officer, AARP. “We delivered petitions today to ensure that all, not just some, financial advisers put their clients’ interests first.  Many opponents of the new rule, who are asking for delays or say the regulatory costs are too high, are simply looking to protect high fees at the expense of consumers.  But consumers deserve advice in their best interest, not advice that benefits the adviser.”

 

In addition to forwarding petitions to the Department of Labor, AARP volunteers continue their efforts with Congress to prevent legislation that seeks to stop or slow an updated “best interest” standard.  Each year hidden fees, unfair risk and bad investment advice rob Americans of $17 billion of retirement income.

 

AARP plans to submit comments to the Department on the proposed rule in the weeks ahead. The petition delivery today included over 33,000 signatures and follows an initial petition delivery in May that included over 26,000 signatures that support eliminating conflicts of interest in retirement advice.  “It is important that the Department hear from individuals who are negatively impacted by the current standard, not just financial firms who benefit from it,” said LeaMond.”