WASHINGTON -- One casualty of the House budget talks to avert a government shutdown may be a proposed rule requiring investment advisers to act in the best interests of their clients, according to multiple House Democratic sources. Labor activists and financial reform experts have heralded the rule as a critical step toward enhancing retirement security. The policy would impose a fiduciary duty on financial professionals who oversee retirement accounts, barring them from considering the potential profits of their own firm when choosing investments. Instead, investment managers would have to pick stocks, bonds and other assets based only on what was in the best interest of retirees. The rule was first introduced by the Department of Labor in 2010, but was tabled in 2011 after massive pushback from the financial industry. Consumer advocates have been pressing the Labor Department to implement the rule. But according to House Democratic staffers, top negotiators in the latest budget talks are considering a plan that would effectively gut it.
Posted on: Sun, 07 Dec 2014 08:50:17 +0000